At some point, employers may face workplace conflicts that have escalated into industrial action from their workers. To reach mutual settlements, you may need to negotiate with trade unions – but only if they’re recognised.
Founded by the Trades Union Congress (TUC), ‘HeartUnions Week’ falls on 10-16 February – celebrating trade union movement across the UK. Employers should use this week to fully understand the role of trade unions, as well as how to manage the best outcome for your business during workplace conflicts.
Failing this could result in facing industrial action from workers, legal challenges from unions, and paying large compensation penalties. For further advice, contact one of our expert HR advisors free of charge today.
Now, let’s look at what steps employers need to follow when recognising (or not recognising) a trade union.
Do employers have to recognise trade unions?
No, employers are not legally obliged to recognise trade unions. However, they may be forced to do so under statutory recognition processes. A trade union can only gain recognition in two ways: from the employer or Central Arbitration Committee (CAC).
Employers: The union must ask the employer to recognise them voluntarily. If they agree to the request, then the union is recognised.
Central Arbitration Committee: If a business with more than 21 employees doesn’t want to recognise a trade union, the union can apply for statutory recognition from CAC.
As of February 2025, a trade union's right to access will not apply to businesses that are run out of someone’s home. Only ‘qualifying’ trade unions will have a right to access, defined as unions that have an independent certificate.
Upcoming changes to Trade Unions
From 1st January 2027, significant changes to trade unions will be brought into strengthen their influence.
Firstly, business owners have a new obligation: they must, in writing, inform employees of their right to join a trade union. Additionally, employers will have to issue regular reminders to their workers of this right throughout their employment.
Trade unions will also be granted a host of new powers, notably, the ‘right of access’ to workplaces with 21 or more employees. This could be to recruit, organise, support and represent workers (from 30th October).
Here’s how it might look for a business:
Trade unions can submit a request for access.
Employers must respond in 15 working days either accepting or rejecting—if the latter, specific reasons must be provided.
Even if a business refuses it, they could be taken to court to force through access.
There will be a two-tier fine system in place issuing heavy penalties if employers don’t comply with access agreements:
Initial breaches could reach up to £75,000
Repeat breaches could result in fines of up to £150,000
What is voluntary trade union recognition?
This is when a trade union wants recognition from an employer on a voluntary basis. They need to express this through a written request that includes the union’s name and the names of the employees it’s representing. (This is known as the 'bargaining unit').
The request should also highlight that it’s being made under the Trade Union and Labour Relations (Consolidation) Act 1992. Employers have 10 working days to respond, choosing one of three outcomes:
Recognition: You agree to recognise the union voluntarily (and begin collective bargaining).
Rejection: You reject the request (the union may apply for statutory recognition).
Negotiation: You refuse the initial request but agree to negotiate terms.
Can employers negotiate the recognition request?
Yes, employers have 20 working days to come to an agreement (longer if unions agree). The agreement should state which employees are in the bargaining unit. And whether the union should be recognised for collective bargaining.
If you want to negotiate terms, you have 10 days to ask ACAS for assistance. At this point, if both parties cannot agree or the union is still not recognised, the union can apply for statutory recognition through CAC.
What is statutory trade union recognition?
This is when a trade union applies for statutory recognition through Central Arbitration Committee because the employer doesn’t voluntarily agree to recognise them. A trade union can only apply for recognition to CAC if:
They’ve sent an application copy (with supporting documents) to the employer.
They have at least 10% union membership within the proposed bargaining unit.
They have evidence that a majority of employees want trade union recognition.
A trade union cannot only apply for recognition if:
They’ve already applied for it within the last three years.
They’re not a certified independent union.
There’s already a recognised agreement allowing a union to represent the bargaining unit.
Another union (representing 10% of the employees in the proposed bargaining unit) has already applied to CAC.
Can employers challenge statutory trade union recognition?
Yes – if employers want to challenge the application, they’ll need to send this to CAC within five working days. CAC will reply within 10 working days with one of the following decisions:
Ask for more information before making a final decision.
Reject the union's application if it hasn’t met requirements.
Accept the union’s application.
If a trade union’s application is accepted, employers need to start discussions on which employees the union will represent through the bargaining unit.
How do employers establish the bargaining unit?
As part of negotiations, employers can agree who is in the bargaining unit with the trade union. If you cannot reach an agreement, Central Arbitration Committee will decide. They will ask employers and unions for:
A list of the categories of employees expect to be in the bargaining unit.
A list of the places where they work.
The number of employees in each category at each workplace.
Employers have five working days to send this from the application acceptance date. CAC will hold a hearing on the bargaining unit – considering the views of both parties.
The union may appoint a ‘suitable independent person’ (SIP) to communicate with the bargaining unit. Employers must provide SIPs with proper information on bargaining units. Failing this could result in remedial orders. CAC may even declare union recognition if you don’t fulfil the order.
Can CAC hold a ballot on trade union recognition?
Yes, Central Arbitration Committee can decide to hold a ballot on trade union recognition. Employees will be balloted on whether they want a union to be recognised. That’s only if the majority of employees in the bargaining unit aren’t union members. CAC may also hold a ballot if the majority of union member employees who believe any of the following:
It’ll help maintain good work relations between them and their employer.
There’s evidence that numerous union members don’t want union representation.
There are concerns about why some members joined the union.
What happens before the ballot takes place?
Employers will receive a letter stating a ballot will take place; either by post, in their workplace, or both. CAC will ask for your views and the union’s before choosing what kind of ballot to hold.
The union has 10 days to withdraw its application. If not, CAC will appoint a qualified independent person (QIP) to run the ballot. (Note, ballots usually last 20 working days once the QIP is appointed). The cost of the ballot is split equally between you and the union. Employers must:
Ensure the union can talk to the employees in the bargaining unit.
Give CAC a list of names and addresses of those in the bargaining unit. (And updates on those joining or leaving).
Not ask employees to miss union meetings unless it’s absolutely necessary.
Not threaten or take any action against an employee because they attended a union meeting.
What happens after the ballot takes place?
Once the ballot takes place, Central Arbitration Committee will share results within 48 hours. They'll state whether the union is recognised if the majority of employees vote to recognise the union. And at least 40% of the bargaining unit vote to recognise the union.
If CAC declares a trade union is recognised, employers must co-operate on how to collectively bargain on pay, hours, and holiday entitlement. If CAC doesn’t recognise them, the union won’t be able to apply for statutory recognition for three years. (Employers can still recognise them voluntarily if they choose).
How do employers end negotiations with trade unions?
Employers won’t need to continue negotiations if a trade union withdraws their application. They need to do this before Central Arbitration Committee either declares them as recognised or not recognised; or states they’re holding a ballot of your employees.
If the union does withdraw because you agree to recognise them, both parties need to inform CAC. You need to send them a ’joint notice to cease consideration’ – signed by yourself and the union rep. This must be done before CAC recognises the union, or up to the last day of the ballot period (which is 10 working days from when it was announced).
Get expert advice on recognising trade unions with Peninsula
It’s up to employers whether they want to recognise a trade union or not. However, this is not a decision that should be taken lightly. One wrong move and you could face serious consequences for employee morale, as well as business productivity.
Peninsula offers expert advice on recognising trade unions. Our 24/7 HR advice is available 365 days a year. Want to find out more? Book a free chat with one of our HR consultants. For further information, call 0800 051 3685.
Sources
HeartUnions week 2025 | Trades Union Congress (TUC)
Trade Union and Labour Relations (Consolidation) Act 1992 | GOV
