The first set of reforms under the Employment Rights Act 2025 introduce a number of important updates to the legal framework governing trade union activity and industrial relations. These changes affect employers, unions and workers, and are due to come into force on 18 February 2026.
This article will discuss the most significant reforms employers and unions should be preparing for.
Political Funds
One of the most notable changes is the move to an opt‑out system for political fund contributions.
From February 2026, new union members will automatically contribute to their union’s political fund unless they actively choose not to. Existing members who have already opted out will remain opted out without needing to take further steps. The Act also removes the requirement for unions to send annual reminders about opting out and abolishes the 10‑year political fund renewal ballot.
Check‑Off Restrictions Removed
The restrictions on check‑off arrangements in the public sector will be removed. Public sector employers will once again be able to deduct union subscriptions directly from payroll without requiring unions to reimburse administrative costs.
Facility Time Reporting Ends
The requirement for public sector employers to publish annual facility‑time data will be revoked. Employers will still need to report for any period that ends before 18 February 2026, but no reporting will be required for periods that extend beyond that date.
Industrial Action Ballots
The 40% support threshold for ballots in important public services will no longer apply to ballots opened on or after 18 February 2026.
Additionally, the information unions must include in ballot notices and voting papers will be reduced. The mandate for industrial action following a successful ballot will extend from six months to twelve, but only for ballots opened after the commencement date.
Notice Requirements and Picketing
The statutory notice period for industrial action will reduce from 14 days to 10 days, unless a shorter period is agreed with the employer.
The Act also removes the requirement for unions to appoint a picket supervisor. This change applies on a day‑by‑day basis, meaning supervision is still required for any picketing that takes place before 18 February 2026.
Stronger Protection Against Dismissal
The Act removes the 12-week ‘protected’ period for unfair dismissal protection during industrial action. From 18 February 2026, employees who take part in protected industrial action will be protected from unfair dismissal for the entire duration of the action, regardless of how long it lasts.
This protection applies only where the employee begins industrial action on or after the commencement date.
Certification Officer
The Act removes the requirement for unions to include industrial action ballot data and additional political fund expenditure information in their annual returns for any reporting period that includes 18 February 2026.
Some of the Certification Officer’s investigatory powers will also fall away, except where an investigation or written enquiry has already begun before commencement.
Preparing for the Changes
All in all, these reforms represent a significant change in the balance of industrial relations. Employers, particularly in the public sector, should review their internal processes, update policies, and ensure HR and management teams understand the new requirements.
Unions will also need to adjust their procedures, especially around balloting, political funds, and reporting obligations.
If you have any questions or are seeking legal advice relating to this, please contact newinstruction@firstnorthlaw.co.uk and we will be happy to assist.