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HOW WILL THE UPCOMING TRADE UNION REFORMS AFFECT EMPLOYERS AND EMPLOYEES?

Posted on by Anna Weeden

The Employment Rights Act 2025 constitutes a landmark change in employment rights not seen in a generation. Significant changes concerning trade union rights form part of the reforms it will implement, introducing new rights and enhancing others.

The changes range from bolstering protections for individuals who are members or representatives of trade unions, to making it easier for trade unions to access new workforces and become recognised by them, as well as requiring employers to inform workers of their right to join them. Some reforms affect employees only, whilst others will apply to both employees and workers. This article will explore and summarise what these changes will look like in practice for those affected.

For the creative industries, like film, TV and theatre, these reforms are worth taking particular note of. Trade unions like BECTU and Equity play a pivotal role in negotiating working conditions, pay and safety standards for productions, making these updates extremely relevant to both employers and workers alike.

Please be aware that not all trade union related changes introduced by the Employment Rights Act 2025 are covered in this article. If you would like more information on such other changes, for example changes to information requirements on industrial action ballots, then please reach out to one of our employment lawyers directly.

THE NEED TO KNOWS

THE RIGHT TO JOIN A TRADE UNION

Employers will soon need to inform workers of their right to join a trade union. They must receive a written statement at the same time they’re provided with a written statement of particulars (i.e. an employment contract), or at other “prescribed times”.

This change could have significant implications for production companies and studios in the creative industries. Many workers in this sector including lighting technicians, camera operators, and post-production staff, are freelancers or on short-term contracts. Employers need to ensure that all qualifying workers, regardless of their employment status, are informed of their right to join unions like BECTU and Equity. Practically, this could look like updating onboarding processes for freelancers and ensuring compliance across large-scale productions with multiple contractors.

Details of what information must be included in the statement are yet to be decided and announced. This may include details of rights that workers have against detriment and dismissal on trade union grounds, as well as other trade union related protections afforded to workers under legislation.

Failure to provide workers with a compliant statement will be addressed in the same way as failure to provide workers with a legally compliant written statement of particulars of employment or engagement. Compensation equal to two to four weeks’ pay (currently capped at £751 per week) will be payable to workers who are able to bring this claim in addition to another substantive claim.

It is currently expected that employers will be required to provide such a statement from October 2026.

RIGHT OF ACCESS

A new right will be introduced for trade unions to physically and digitally access workplaces of employers with 21 or more workers for various purposes (e.g. to meet, support and organise with workers, but not to organise industrial action).

This could result in unions requesting access to film sets, studios or post-production facilities to engage with workers. Production companies and broadcasters hiring large teams for TV shows or feature films will need to factor in union access when planning schedules and operations to avoid disruptions.

A Code of Practice has been published to provide employers with practical guidance on how this right to access will operate in practice. This is a draft code that may be changed following a consultation process that closed on 20 May 2026.

A new statutory framework through which trade unions can negotiate physical and digital access to an employer’s workplace will be implemented. Through this framework:

  • A union submits a request for access to an employer. If the employer agrees to the access terms, then the Central Arbitration Committee (CAC) should be notified and they will record the agreement.
  • If the employer rejects the request, then negotiations between the employer and union begin.
  • If those negotiations fail, a party can apply for the CAC to determine whether the union should be granted access. If it rules that it should, then it can impose access terms themselves.

If an access agreement has been breached, a party can complain to the CAC. The CAC can vary the agreement, declare the complaint well-founded (or not), and issue orders for certain steps to be taken to ensure compliance. For subsequent, upheld complaints for repeated breaches of the agreement or breaches of a CAC order, the CAC can issue a penalty. Legislation governing how much of a penalty can be imposed will be introduced; it is intended that a fine up to £75,000 can be imposed at first, increasing to a maximum of £150,000 for a second and £500,000 for a third or subsequent penalty.

It is expected these reforms will be implemented in October 2026.

EXTENSION OF PROTECTION FROM BLACKLISTING

Currently, employers are banned from ‘blacklisting’ trade union members for employment purposes, namely to deny employment, to dismiss them, or to cause detriment to them because of their trade union membership or activities.

The government will extend the prohibition on blacklisting. They will introduce regulations to protect a wider range of people from blacklisting due to trade union membership or activity.

Blacklisting has been a historical concern in the creative industries, especially for freelancers who often rely on positive reputations to secure future work. Crew members or performers involved in union activities may fear being excluded from projects, but these new protections, including against AI-generated or digital blacklists aim to prevent such practices in an industry that is becoming increasingly reliant on automated hiring platforms.

These reforms are intended to strengthen prohibitions against third parties who are not employers or employment agencies from compiling and selling or supplying blacklists, as well as to prohibit such lists being used for discrimination in recruitment or treatment of workers even where the lists have not been compiled for those purposes (for example if AI has created a list of workers which is subsequently sold or supplied or used for the purpose of discriminating against those workers based on their trade union membership or activity).

A consultation on these reforms will take place this year and the reforms are anticipated to take effect in 2027.

TIME OFF AND FACILITIES FOR TRADE UNION OFFICIALS, LEARNING REPRESENTATIVES AND EQUALITY REPRESENTATIVES

Trade union officials are entitled to paid time off during working hours in connection with certain duties and activities or to undergo training in respect of those activities. Recognised learning representatives of trade unions who undertake certain activities are similarly entitled to paid time off to carry out those activities under certain circumstances.

Employers are currently obligated to provide such time off only if it is reasonable in all the circumstances. This will change so that:

  • the amount of paid time off employees want to take to carry out such duties will be automatically presumed to be reasonable; and
  • employers will be required to show that the time off requested is not reasonable. 

If an employee is an equality representative of a trade union recognised by the employer, employers will also now be required to allow them to reasonable time off to conduct certain activities, for example arranging learning or training on matters concerning equality in the workplace. This right will only apply where:

  • equality representatives have undergone sufficient training to carry out these activities (and their trade union has given the employer written notice of this fact); or
  • the trade union has, within the last six months, given the employer written notice that the equality representatives will be undergoing such training. Only one such notice can be given to any one employee, and the relevant training will need to be completed within six months, and the trade union will need to notify the employer that they have completed this training within six months of that notice being provided to them.

Employers will also now have to provide trade union officials, learning representatives and equality representatives with access to facilities that enable them to carry out their duties or training, if reasonable in all circumstances, and if they request them. This may, for example, include providing an office or meeting space.

These changes are anticipated to come into effect in October 2026, and a Code of Practice offering practical guidance on how to abide by these new measures will be provided by ACAS.

DISMISSAL FOR PROTECTED INDUSTRIAL ACTION

This protection only applies to employees who take part in “protected industrial action”. This broadly means industrial action lawfully authorised and endorsed by a trade union that complies with certain requirements, such that it provides the union with certain legal protections.

Previously, employers could not dismiss employees if the main or sole reason for dismissal is that they took part in protected, official industrial action for a period of 12 weeks or less, or during a longer period where employers have not taken reasonable steps to resolve the dispute subject to the protected industrial action. Any such dismissal is automatically unfair.

This could become a key consideration for film and TV productions during union-led strikes or industrial action. Prolonged disputes could lead to significant delays in filming schedules as employers will no longer be able to dismiss employees participating in protected action, even after 12 weeks.

For any protected industrial action taking place on or after 18 February 2026, employers cannot dismiss any employees by reason of their participation in such action irrespective of how long the action takes place.

DETRIMENT FOR TAKING PART IN TRADE UNION ACTIVITIES

Currently, workers have no protection against detriment (i.e. any action short of dismissal) for taking part in protected industrial action.

The Employment Rights Act addresses this by giving workers the right not to be subjected to detriments “of a prescribed description” for taking part in protected industrial action or to deter them from taking such action. Any workers subjected to such a detriment may be awarded compensation and that compensation may be increased if relevant ACAS Codes of practice are not followed by an employer. Following a government consultation which closed on 23 April 2026, the government confirmed that it intends to prohibit all types of detriment. However, workers participating in protected industrial action can still lose their pay during periods when they are not working.

Draft regulations have been published which, if passed, will provide this protection to workers with effect from 30 October 2026.

REFORMS TO STATUTORY UNION RECOGNITION PROCEDURE

If employers do not voluntarily agree to recognise a union, a union has the option to apply to the CAC to impose recognition on an employer’s workforce. Since 6 April 2026, that application process has become much easier.

Under the old process:

  • The applying union had to demonstrate that at least 10%  of the group of workers that the union proposes to negotiate and collectively bargain on behalf of (known as the “Bargaining Unit”) were members of that union.
  • Prior to ordering a ballot for recognising a union, a union had to show it was likely to secure majority support for recognition amongst workers in the Bargaining Unit and demonstrate detailed evidence for this support.
  • If the CAC ordered a recognition ballot for a union to be recognised, in order to succeed, the ballot outcome would require:
  • a majority in favour amongst those voting in the ballot; and
  • the proportion of those voting in favour in the ballot to constitute at least 40% of workers within the Bargaining Unit as a whole.

A number of changes have simplified this process, including:

  • changing the test for demonstrating minimum union representation of the proposed Bargaining Unit, which could mean anywhere between 2% to 10% union membership of the Bargaining Unit will suffice;
  • removing the requirement for unions to show likely majority support for recognition; and
  • requiring only a simple majority of those actually voting in a ballot for a union to be recognised, removing the requirement for at least 40% of the Bargaining Unit to vote in favour.

In addition to simplifying the process, additional regulations relating to the process will be introduced, including:

  • requiring employers to provide the CAC with certain information about workers in a Bargaining Unit within five working days of being notified of receipt of the trade union’s application for recognition (expected to come into force in 2027);
  • changes to the negotiation period for unions accessing workers in a proposed Bargaining Unit; and
  • strengthening protection against unfair practices during recognition and derecognition ballots. This will include prohibiting employers from increasing the number of workers in a proposed Bargaining Unit provided to the CAC for recognition purposes, and extending such protection throughout the statutory recognition process, starting from the point where the CAC accepts the union’s application for statutory recognition (expected to come into force in October 2026). 

WHAT NEXT?

The landscape of trade union reform will continue to shift over the next year, with most changes still to be introduced and many still subject to consultation and further decisions from the Government. 

For employers in the creative industries, these changes represent an opportunity to strengthen relationships with unions whilst ensuring compliance. Production companies, studios and broadcasters should review their current policies and prepare for the reforms to avoid potential risks during negotiations with unions.

For further information on these changes and for advice on how to prepare and comply with the new rules, please reach out to Yvonne Gallagher or Harry Wade, the authors of this article.

Please note that this guidance note summarises the changes outlined above and does not serve as formal legal advice.

Workplace stress claims: Howard Hymanson’s expert perspective on stress in the workplace and employee wellbeing

Posted on by Anna Weeden

“The obligation on employers to ensure a safe system of work applies equally to protecting someone’s mental health as it does their physical health.”

Partner and co-head of our employment practice Howard Hymanson has been featured today in the latest episode of The Charlène Gisèle Show.

Charlene’s podcast is aimed at successful professionals wanting to achieve their career goals without the stress. As a former lawyer turned executive coach, Charlène aims to guide individuals to a balanced career without sacrificing success.

In this episode, Howard shares his insights on workplace stress from navigating stress claims and discrimination to addressing burnout and fostering healthier workplace cultures. Howard, who is a leading expert on stress at work compensation claims and mental health in the workplace, provides his perspective which lies at the intersection of employment law and wellbeing.

The full episode can be watched here.

ERA 2025: the new Act and the entertainment industry

Posted on by Anna Weeden

After the twists and turns of its parliamentary journey in 2025, and many amendments later, the long-awaited Employment Rights Act 2025 is now law. We unpack what this means for employers in the film, TV and entertainment sectors for the year ahead. 

UNFAIR DISMISSAL CHANGES

Turning first to the biggest change, unfair dismissal rights. The Labour Government’s aspirational ‘day one’ right not to be unfairly dismissed did not become law. However, the changes are still significant.

From 1 January 2027, employees will need six months’ service to bring a claim for ordinary unfair dismissal (rather than the current two years), meaning anyone continuously employed on or before 1 June this year will have protection from unfair dismissal from the start of 2027.

The current statutory cap on compensation for unfair dismissal, a year’s pay or £118,223, will also be abolished.

This is a big moment in employments rights. Although moving from ‘day one’ to ‘six months’ feels like a welcome compromise, employers must take greater care to get recruitment practices right, assess fit early on and take decisive action when things do not go to plan.

For film and TV companies, who hire staff short term for specific productions, careful thought will need to be given to employment status and termination processes when a production wraps or projects come to an end.

Equally significant is the removal of the compensation cap. Employers are used to the comfort of the statutory cap representing a worst-case scenario for unfair dismissal claims, but such claims will have a higher potential value. In the entertainment industry, where talent, presenters, and behind the camera executives are on significant salaries, this change really will matter.

TRADE UNION EMPOWERMENT

The Act has promised modernisation of trade union legislation, and with this comes a shift of power back to the unions. The Government’s union proposals have largely made it into the final law, with the result that unions will have more freedom to access members and workplaces, call industrial action and secure recognition.

Major changes begin to take effect in February 2026 (with some immediate changes for the public sector before then). In relation to industrial action including strikes, unions will need a simple majority vote to take action, any mandate will last for 12 months, instead of six months, and the notice of industrial action will reduce from 14 to 10 days.

This change to the law is of particular relevance for the film and television industry at the moment, given British Equity’s indication late last month that it may hold a statutory ballot on industrial action if terms cannot be agreed regarding AI. This followed a poll of British Equity members in December, with 75% turnout, where 99% of members indicated that they would refuse to be scanned on set without AI protections.

During 2026, a framework will be introduced giving trade unions stronger rights of access to workplaces from October 2026, both physically and through digital communications with employees.

More detail will follow in Regulations over the coming months.

Union agreements and relationships form an integral part of employment terms and arrangements for many businesses in the entertainment industry. It will be important for employers to fully understand the enhanced union rights and consider how this impacts their own union engagement and industrial relations strategies.

FAMILY FRIENDLY AND LEAVE RIGHTS

Day one rights have been introduced for family and other types of leave, with most expected to come into effect in April this year, or in early 2027.

These include: an entitlement to at least one week of bereavement leave, including for early pregnancy loss; paternity and parental leave rights from day one of employment; and statutory sick pay applicable from the first day of absence.

Rates of pay in respect of such rights remain low or uncertain. Statutory sick pay is capped at £123 per week, and a significant increase is not currently contemplated. The day one rights in respect of maternity and paternity leave do not extend to statutory pay, with employees still needing a period of continuous service for eligibility.

This means immediate costs to businesses are not duly onerous, although employers should note there is an ongoing wider Government review on the parental leave and pay system, although the review stage will not conclude before 2027. 

For many employers in the entertainment industry, these reforms won’t mean significant changes, as many already offer over and above statutory entitlements. However, for smaller employers and productions with staff on short or fixed term contracts, it will be important to be aware of the changes and how they may impact policies and different staff groups.

AND THE REST…

The above is a snapshot of three key aspects of the Act likely to be especially relevant to the film, TV and entertainment industries, but there is a raft of further reforms to be aware of.

You can read our overview of the changes here and we will share further insights and webinar offerings as more details emerge.

The takeaway from here is that whilst there are undoubtedly reforms of significance, and employer clients need to use the coming year to get ready for the changes, businesses should not be unduly worried. Being informed and prepared will help the creative sector successfully navigate and manage risk in this new landscape.

Please reach out to our head of film and television and partner, Sarah Lazarides, for more information or training requests about employment law changes and their potential impact.

The Employment Rights Act is now law: what this means for employers and employees

Posted on by Anna Weeden

After a complex journey through Parliament, the Employment Rights Act has officially passed into law. While many of its provisions will require further detail through regulations following consultations scheduled for 2026, some key points are already clear. This new legislation heralds significant changes to employment rights and obligations, with important implications for both employers and employees.

Key changes to unfair dismissal rights

The most notable change concerns unfair dismissal rights, which will no longer be a ‘day one’ right contrary to the Government’s initial proposal. Employees must now complete six months of service before being eligible to bring a claim for unfair dismissal. This new service requirement will take effect from 1 January 2027 and will therefore apply to employees who start work on or before 1 June 2026, provided they are still employed on 1 January 2027.

In a surprising twist, the current statutory cap on compensation for successful unfair dismissal claims has been abolished. Currently, compensation is capped at the lower of one year’s pay or £118,223, effectively limiting pay outs for higher earners. With the removal of both caps, claim values could increase significantly, particularly for higher-paid employees, unless new limits are introduced through future regulations. This unexpected development has raised concerns among employers and could dramatically alter settlement negotiations and tribunal outcomes.

These changes come at a time when the Employment Tribunal system is already experiencing chronic delays, with many cases taking more than a year to reach a hearing. The removal of compensation caps may further exacerbate these delays, as higher-value claims could crowd out lower-value cases. Employers are advised to address any performance or conduct issues promptly, ensuring any necessary terminations occur well before January 2027 to avoid potentially higher claim costs.

Family and leave rights: a day one entitlement

The Act also introduces day one rights for family and other types of leave, expected to come into effect sometime in 2027. These rights include:

  • Bereavement leave: Employees will be entitled to at least one week of bereavement leave, which will apply to early pregnancy loss as well as all other types of bereavement.
  • Parental leave: Employees will have the right to 18 weeks of unpaid parental leave from day one of employment, to be taken any time between the birth of a child and their 18th birthday. Currently, low uptake of this leave is attributed to the fact that it is unpaid.
  • Maternity and paternity leave: These rights will also apply from day one, with no obligation for employees to disclose pregnancy or impending parenthood during recruitment.
  • Statutory sick pay: Employers will be required to pay statutory sick pay from the first day of illness, ending the current three-day waiting period. However, the statutory sick pay rate remains low, capped at £123 per week, with no indication of significant increases.

Trade Union rights: A shift in the balance of power

The Act introduces major changes to trade union rights, which will take effect from February 2026, with some immediate repeals for public sector workers. Key changes include:

  • The removal of restrictions on the number of employees allowed to picket their employer’s premises.
  • A reduction in the notice period for strike action from 14 days to 10 days.
  • An obligation on employers to provide all employees with written information about their right to join a trade union.

Other reforms

The Act also introduces a range of other significant reforms including:

  • Zero-hours contracts: Employees on zero-hours contracts will, in certain circumstances, have the right to guaranteed hours, and employers will be required to give reasonable advance notice of working hours.
  • Pay gap reporting: Employers with more than 250 staff will face extended paygap reporting obligations, aimed at addressing inequalities.
  • Menopause policies: Employers with over 250 employees will also be required to adopt and publish formal policies to support employees going through menopause.
  • Fair work agency: A newly created fair work agency will enforce rights related to minimum wage, sick pay, holiday pay, and modern slavery. However, further details are awaited regarding the extent to which this agency will replace employment tribunals for claims in these areas.

What’s next?

While the passing of the Employment Rights Act into law provides some clarity, much remains uncertain. Several consultations are underway, with more expected, and the start dates for many provisions have yet to be confirmed.

What is clear, however, is that the Act represents a significant shift in the balance of rights and obligations in employment relationships. Employers should take proactive steps to prepare for these changes, including reviewing policies, addressing current employee issues, and planning for the impact of these reforms on their business operations.

As more details emerge, employers will need to stay informed and adapt to ensure compliance with this transformative piece of legislation.

Early conciliation: a process in crisis

Posted on by Anna Weeden

Partner and head of the firm’s employment group, Yvonne Gallagher, has written an article published in The Times on the challenges facing early conciliation – a mandatory pre-tribunal step aimed at resolving employment disputes within six weeks.

In the article, Yvonne explores how rising demand and systemic delays are impacting the effectiveness of this process, to the detriment of employers and employees alike, and highlights potential solutions to alleviate pressure on both Acas and the wider tribunal system.

Read the full article here.

Yvonne Gallagher featured in Law360’s expert analysis series

Posted on by Nikhita Sagar

Partner and head of our employment practice, Yvonne Gallagher, has been featured in Law360‘s UK Expert Analysis series, where practice group leaders share their perspectives on the current market landscape and insights from their professional experience.

Yvonne discusses the challenges of dealing with clients’ emotions, the significance of the widening scope for discrimination disputes, and why junior lawyers should focus on learning the basic contractual and statutory principles of employment law.

The full piece can be accessed here or via Law360.