How to Work with Trade Unions

From junior doctors to taxi drivers… There have been numerous examples of industrial action within today’s economy. The Office of National Statistics (ONS) found approximately 51,000 working days were lost due to industrial action in Nov 2024.

To protect yourself from detrimental business disruptions, employers need to work alongside trade unions – striving for mutually beneficial outcomes. Today marks the start of ‘HeartUnions Week’ (10-16 February). Organised by Trades Union Congress (TUC), it celebrates trade union movement across the whole country.

Employers should use this week to encourage strong bonds with trade unions and its members. Failing this could leave you facing remedial orders, financial penalties, and workplace strikes. For further advice, contact one of our expert HR advisors free of charge today. 

In this guide, we’ll look at what a trade union is, what legal rights members have, and how to work with them cohesively during workplace conflicts.

What is a trade union?

A trade union is a group of employees who join together to maintain or improve the terms and conditions of their employment contract. In the UK, common union members include teachers, nurses, engineers, apprentices, cleaners, and catering staff.

It’s advisable for employers to work alongside trade unions, especially during times of conflict. Not only does this strengthen employee relations, but it’s also beneficial in reaching agreements that suit both employees and the business.

What do trade unions do?

Trade unions provide assistance and services for its members whenever required. They train representatives to help union members through workplace conflicts, like collective redundancies or industrial action. In the UK, trade unions have made significant changes to society; their works include:

• National Minimum Wage.
• Holiday entitlements.
• Sickness entitlements.
• Maximum working hours.
• Parental leave.
• Equality legislation.
• Improved worker safety.
• Protection of migrant workers and a reduction in exploitation.

What do trade union representatives do?

There are many things that trade union representatives do. Most of them are made up of networks of local branches with representatives in every workplace. Trade union representatives (or reps) will:

• Negotiate agreements with employers on pay and work conditions.
• Discuss major workplace changes, like redundancies.
• Accompany members in disciplinary and grievance meetings.
• Help members with legal and financial matters.

Are trade unions legal?

Yes, trade unions are legal. They have special status under UK law which gives them distinct statutory rights that corporations don’t have. If an employer recognises a trade union, they must:

• Provide information in advance that’ll help with collective bargaining.
• Inform and consult them about major business changes.
• Follow proper procedures on union subscriptions and check-offs.
• Allow union reps and members to take time off for union activities.
• Not discriminate against employees for being in a trade union.

Trade union representatives have a right to consult their members and employers. You cannot punish an employee if they join (or don’t join) a trade union.

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.

What rights do employees in trade unions have?

Employees who are trade union representatives or members have access to certain statutory rights. Some examples of their legal rights include:

Discrimination protection

Employers cannot discriminate against employees because they’re in the union or because of their union activity. This is covered under the Trade Union and Labour Relations (Consolidation) Act 1992.

In rare cases, it’s also illegal to compile, sell, or supply a ‘block list’ of union members that’s used to discriminate against them.

Reasonable time off work

Trade union representatives are allowed reasonable time off work with or without pay. (It’s important to note that reasonable time off doesn’t have to be used as annual leave). This is covered under the same legislation mentioned above. Reps may take time off work:

With pay: For union duties and training at appropriate times.

Without pay: To take part in union activities. For example, visit the union’s annual conference. (Trade union members are also entitled to this right, too).

How to work with trade unions

Whilst trade unions are generally on the side of the employee, it’s beneficial for employers to establish solid, professional relations with them. Not only does this allow transparent communication, but it also strives towards the best outcome for business continuity.

Let’s take a look at how employers can work alongside trade unions in the most favourable manner:

Outline collective bargaining terms

Employers should start by discussing changes to employee terms and conditions with their unions. This is called collective bargaining – it covers the main terms outlined in a defined ‘bargaining unit’. This can apply to all employees in a business, or a select group of them.

Employers and unions need to establish how to run collective bargaining. Some details you’ll need to cover include:

Representation: Who will be representing the employees?

Members: Who will be included in the bargaining unit?

Meetings: When and how often will meetings be held?

Multiple unions: What happens if more than one union is recognised?

Information: What will be discussed during the meetings?

Stalemate: What happens if the employer and the union cannot reach an agreement?

Employers must provide certain information to the union that'll help with bargaining proceedings. For example, providing documents on your business’s pay and benefits structure. If the bargaining leads to unified terms, it’s called a collective agreement.

Inform and consult with unions

Under UK law, employers must inform and consult with a recognised trade union on certain matters. These can include:

• Collective redundancies.
• Transfer of business ownership.
• Certain changes to pension schemes.
• Health & safety.

Failing to consult unions about any one of these matters is an illegal offence. Employers could face financial penalties – the amount varying depending on the seriousness of the situation.

Schedule any union subscriptions

When employees join a trade union, they mostly do so by paying a fee. Some trade union members pay their union subscriptions directly from their wages. Their employer will pass these payments directly to the union – which is known as the ‘check-off’.

Employers can decide if they want to run the check-off. Unions cannot force you to run check-offs unless you agree to it through your employees’ employment contracts.

It’s important to note that employees must give written permission to take union subscriptions from their wages. This must be signed and dated; their permission starts from this date and continues until they decide otherwise.

Manage the check-off

If an employer takes a check-off without permission, it could result in an employment tribunal claim. You can pre-print consent forms for employees to sign and date themselves. Unions are also allowed to receive written permission from the employee, which is then forwarded to you.

Employers must stop check-off payments if their employees ask them to. This must be done in writing and reasonable time. Employers can stop running the check-off at any time. However, depending on contractual terms, you might need to provide notice to employees beforehand.

Employees can involve trade unions to help run the check-off. You can also charge them for the work involved in administering the check-off. However, employers still have full responsibility over all check-off deductions.

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.

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 working with trade unions with Peninsula

All employees have a legal right to join or seek trade union assistance without facing discriminatory consequences. When facing trade unions, employers should show professional cooperation – striving for the best outcome for all parties.

Peninsula offers expert advice on working with 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

Labour disputes; working days lost due to strike action; UK (thousands) | ONS

HeartUnions week 2025 | Trades Union Congress (TUC)

Trade Union and Labour Relations (Consolidation) Act 1992 | GOV