Many small business owners assume trade union legislation only affects large manufacturers, public sector organisations or businesses with hundreds of employees.
From 1 October 2026, that assumption could become an expensive mistake.
The Employment Rights Act (ERA) 2025 introduces several new trade union rights which will affect employers of all sizes, including SMEs that have never had any dealings with a trade union before.
While these changes are unlikely to affect your day-to-day operations immediately, they do create new legal obligations that employers need to understand and prepare for.
What’s Changing?
Employees Must Be Told They Have the Right to Join a Trade Union
From October, employers will be required to inform employees of their legal right to join a trade union.
This information will need to be included within employment documentation and provided to employees as part of the employment relationship.
For many SMEs this will mean updating:
- Contracts of employment
- Offer letters
- New starter packs
- Employee handbooks
Even if no one in your business belongs to a union, you will still need to comply with this requirement.
Trade Unions Will Gain Greater Access to Workplaces
Historically, trade unions could only enter workplaces with the employer’s agreement.
The new legislation creates a framework allowing trade unions to request access to workplaces for purposes such as:
- Recruiting members
- Meeting employees
- Organising workers
- Providing support and representation
This could include physical access to the workplace as well as certain forms of digital communication.
Many SME owners may receive a trade union access request for the first time and may be unsure how to respond.
The key point is that granting access does not automatically mean recognising the union for collective bargaining purposes.
However, employers will need a clear process for dealing with such requests appropriately.
More Rights for Trade Union Representatives
The Act also strengthens the rights of trade union representatives.
Employers may be required to provide reasonable paid time off for union representatives to carry out their duties.
In addition, union equality representatives will have rights to undertake activities aimed at promoting equality in the workplace.
Managers who are unfamiliar with these rights may inadvertently create legal risks if requests are refused without proper consideration.
Why SME Employers Should Pay Attention
Many business owners are currently focused on the other major changes introduced by the Employment Rights Act, including:
- Day One employment rights
- Statutory Sick Pay changes
- Sexual harassment prevention duties
- Family leave reforms
- Increased tribunal protections
As a result, trade union reforms are often being overlooked.
That could be a mistake.
A manager who refuses workplace access, ignores a request for paid time off or fails to provide the required information to employees could expose the business to unnecessary disputes and legal challenges.
What Should You Do Now?
The good news is that preparation is straightforward.
1. Review Your Employment Contracts
Ensure contracts and onboarding documentation include the required statement regarding an employee’s right to join a trade union.
2. Update Your Employee Handbook
Your handbook should be reviewed to ensure it reflects the new legal position and provides guidance for managers.
3. Create a Trade Union Access Procedure
Consider how your business would respond if a union requested access to your workplace.
A simple procedure should cover:
- Who handles requests
- Security arrangements
- Health and safety requirements
- Appropriate meeting locations
- Digital access arrangements
4. Train Managers
Managers are often the first people to receive requests from employees or union representatives.
They need to understand:
- What the new rights are
- What they can and cannot do
- When HR advice should be sought
5. Don’t Wait Until a Problem Arises
Like most employment law changes, the businesses that prepare early are usually the businesses that avoid problems later.
Taking a few simple steps now will help ensure compliance and reduce the risk of unnecessary disputes.
Final Thoughts
Trade unions are likely to become more visible in many workplaces over the next few years.
Whether you agree with these reforms or not, employers will need to understand their obligations and ensure managers know how to respond appropriately.
For SME owners already juggling customers, staff, compliance and day-to-day operations, now is the time to get your documentation and procedures in order before the October 2026 deadline arrives.
Need Help Preparing?
NewmanHR specialises in providing practical, cost-effective HR support for SMEs.
If you would like your contracts, handbook or management procedures reviewed ahead of the October 2026 changes, get in touch for a free initial consultation.
Michael Newman
Commonsense HR Solutions for Growing Businesses.
