Understanding the Upcoming Trade Union Reforms –

What UK SMEs Need to Know about trade union changes 2025

Why These Changes Are Happening

The UK is about to see one of the most significant shake-ups in trade union law in over a decade. These reforms are part of the Government’s wider employment rights agenda, which aims to give workers more say in their working conditions and make it easier for unions to organise and take lawful action.

In recent years, several laws introduced between 2016 and 2023 created strict rules around how and when industrial action could happen. These included higher voting thresholds, extended notice periods, and requirements to maintain certain staffing levels during strikes. Supporters said these measures protected the public from disruption, while critics argued they placed unnecessary barriers in front of workers trying to defend their pay and conditions.

The new legislation rolls back many of these restrictions. It has been shaped heavily by commitments in the current Government’s manifesto and by long-standing calls from trade unions to modernise strike laws. The overall aim is to speed up dispute processes, remove procedural hurdles, and give employees stronger legal protection when taking part in industrial action.

For small and medium-sized businesses, these changes mark a shift towards a more union-friendly environment. Disputes may escalate more quickly, strikes could be harder to predict, and the potential impact on operations could be greater.

Key Reforms Explained

End of the Strikes (Minimum Service Levels) Act 2023

This Act allowed the Government to insist on minimum staffing levels in key sectors during strikes, such as transport and healthcare. Its removal will mean unions are no longer legally required to ensure a set number of staff work during industrial action. For SMEs, particularly those relying on public transport or public services, this could lead to more significant disruption during strike periods.

Scaling Back the Trade Union Act 2016

The 2016 legislation brought in tough requirements for industrial action ballots, including high voter turnout thresholds and longer lead times before strikes could begin. Most of these provisions will be removed, meaning unions will find it easier to meet the legal conditions for striking. This could reduce the notice SMEs receive before action is taken and make disputes move from discussion to strike far more quickly.

Dropping the 10-Year Renewal Rule for Political Funds

Trade unions currently have to hold a vote every ten years to confirm whether members still support the union maintaining a political fund. This rule will be scrapped, allowing unions to keep these funds in place indefinitely. It gives them a more reliable income stream to support campaigns and industrial action, potentially strengthening their influence over time.

Shorter and Simpler Ballot and Action Notices

Currently, unions must give detailed written notice before balloting members or starting industrial action, often giving employers enough time to prepare or challenge the process. The new approach will simplify the notice requirements and cut down the amount of detail needed, giving SMEs less opportunity to plan or mount a legal response.

Stronger Protection from Dismissal for Striking Workers

Employees who take part in lawful industrial action will now have greater protection from being dismissed because of it. SMEs must be especially careful to ensure any decisions made during or after a strike cannot be seen as linked to an employee’s involvement, as this could result in tribunal claims.

What This Means for SMEs

The reforms are designed to speed up the process of organising industrial action, reduce legal hurdles for unions, and strengthen workers’ rights when taking part. For SMEs, the result is a faster-moving, potentially more unpredictable employee relations landscape.

This doesn’t mean disruption is inevitable — but it does mean the risk is higher, and businesses will need to be more proactive in managing workplace concerns before they turn into disputes.

How SMEs Can Prepare for the Trade Union Changes

The upcoming trade union reforms will give unions greater freedom to organise and employees stronger protections during industrial action. For SMEs, preparation is key to avoiding costly disputes and operational disruption. Here’s how to get ready:

1. Review and Update Policies

Make sure your staff handbooks and HR policies are up to date, particularly in areas such as dispute resolution, grievance handling, and communication protocols during industrial action. Policies should be clear, fair, and legally compliant.

2. Train Managers and Supervisors

Many SMEs rely on line managers to handle staff issues day-to-day. Train them to understand the new legal limits on dealing with union members and industrial action, including what they can and cannot say or do without risking a claim.

3. Strengthen Employee Engagement

The best way to avoid industrial disputes is to address problems early. Encourage open communication, hold regular check-ins, and act promptly on feedback. If staff feel listened to, they are less likely to seek union intervention.

4. Improve Record-Keeping

Document all discussions, decisions, and actions relating to employee relations. In the event of a dispute, having a clear paper trail will help show you’ve acted reasonably and within the law.

5. Develop a Contingency Plan

Think about how your business would operate if part of your workforce took industrial action. Identify critical roles, consider cross-training staff, and prepare alternative workflows to limit disruption.

6. Engage Early with Unions

If your workforce is unionised, build constructive relationships with local representatives. Proactive dialogue can help resolve issues before they es