UK Employment Rights Act 2025: industrial relations and trade union reform

It’s been a busy week for developments under the Employment Rights Act 2025, with more pieces of the industrial relations jigsaw emerging. Our latest reference table on industrial relations and trade union reforms brings together the key changes employers need to know about.

Updated timelines and new consultations

The Government has published an updated implementation timeline. Notable changes include:

• restrictions on “fire and rehire” practices being pushed back to January 2027 (from October 2026)
• electronic and workplace balloting provisions for statutory trade union ballots coming into force no earlier than August 2026, rather than April 2026
• confirmation that most April 2026 changes will take effect on 6 April 2026, except for the establishment of the Fair Work Agency, now due to launch on 7 April 2026

Several consultations have also been launched, including on the “fire and rehire” and flexible working changes.

The “fire and rehire” consultation proposes that a narrow list of changes to expenses, benefits and shift patterns are “restricted variations” and offers reassurance that changes to non-core terms - such as location and job role – will not be in scope. It also confirms that agreed individual or collective changes, as well as reasonable use of existing contractual flexibility, will remain permissible.

To access our previously published Employment Rights Act 2025 reference tables, follow the links below. We have updated them to reflect this week’s developments.

Industrial relations and trade union reform

Our latest Employment Rights Act 2025 reference table provides an overview of the key industrial relations changes, highlighting the increased prominence of trade unions and the enhanced collective influence employees will have in UK workplaces.

This includes upcoming changes on collective redundancy consultation, strengthened union rights (such as rights to request workplace access), a simplified recognition process and relaxed industrial action conditions.

Many measures will be subject to consultation. Some consultations have already taken place, others have launched this week, and more are expected shortly – all will shape the detailed design of the new regime.

We hope this information helps you plan ahead and assess the impact on your industrial relations strategy. Our recent webinar on collective and trade union rights may also be of interest, providing an overview of the reforms and practical steps for preparing for them.

A&O Shearman UK Employment Team

Links to published reference tables:
Table 1: More secure work and basic employment rights
Table 2: Family-friendly rights and equality
 

Subscribing to our global employment blog

From cross‑border perspectives (e.g., U.S./UK comparisons) to EU‑wide analyses and focused UK briefings, our global employment blog brings the breadth of our network to your inbox. Each post is clearly titled by jurisdiction so you can spot what’s most relevant at a glance. Subscribe today to stay ahead of legislative change, with strategic insights curated by our global employment team.