What do SMEs need to know?
Employment law update | August 2026
What's changing, when it's happening and what employers need to do.
Why this matters.
If you don't recognise a trade union or haven't had much union involvement in your business before, you might be wondering whether the latest changes really matter to you.
The short answer is: potentially, yes.
There are significant changes happening throughout 2026. Some are already in force, with more coming later this year, including new obligations that will apply even where you don't currently recognise a union.
So, we've broken down what's changing, when it's happening and, most importantly, what SMEs actually need to do about it.
What's already changed?
February & April 2026
The first wave of trade union reforms came into force in February 2026, making a number of changes to the rules around industrial action.
Among other things, the notice a union normally needs to give an employer before industrial action has reduced from 14 days to 10 days, while the mandate following a successful industrial action ballot has increased from six months to 12 months.
The previous 12-week limit on unfair dismissal protection for employees taking part in protected industrial action has also been removed.
For businesses already working with recognised unions, these are important changes to be aware of. For SMEs with little or no union involvement, though, some of the changes that follow are likely to be more relevant.
Trade union recognition has become easier
Further changes came into force on 6th April 2026 around how a trade union can become formally recognised within a workplace.
Previously, when making an application for statutory recognition, a union needed to provide evidence that a majority of workers within the proposed bargaining unit were likely to support recognition. That requirement has now been removed.
The threshold at the recognition ballot stage has also changed. Previously, at least 40% of workers in the bargaining unit had to vote in favour. Now, a simple majority of those who actually vote is enough.
In practice, this makes the statutory recognition process more accessible for unions.
That doesn’t mean an SME suddenly has to recognise a union because a few employees join one. There is still a formal process to follow. But if a union does approach your business about recognition, it is worth getting advice early rather than trying to navigate the process as you go.
Together, these reforms make it easier for trade unions to achieve statutory recognition and simplify some of the requirements around industrial action. Staying informed now can help your business adapt with confidence.
Electronic and workplace voting is coming in August.
From 25th August 2026, trade unions will be able to use electronic and workplace voting for statutory ballots, including industrial action ballots.
This isn’t something most employers will need to make changes for themselves, but it does make voting more accessible to union members and is another part of the wider move towards making union participation and processes easier
A new duty for employers.
Subject to Parliamentary approval, another package of trade union reforms is due to take effect from 30th October 2026.
And there are a couple in particular that could affect businesses that have never really had to think about trade unions before.
You'll need to tell workers about their right to join a trade union
From 30th October, employers will have a new duty to give workers a written statement explaining their right to join a trade union.
This will need to be provided when someone starts work, alongside their written statement of employment particulars, and again at other prescribed times.
Importantly, this isn't just for businesses that recognise a union.
It will be an employer obligation, so this is one that potentially affects SMEs across the board.
Some of the finer detail around exactly what employers need to provide is still being finalised, so we wouldn't recommend rushing off and adding your own wording to contracts just yet.
But it is something to have on the radar. Once the final requirements are confirmed, onboarding documents and processes will need reviewing.
Unions will have a new right to request workplace access.
Other changes to be aware of
Recognition
Further reforms from 30th October include earlier access to workers and stronger rules around unfair practices. Managers should not threaten, offer incentives to discourage support or try to improperly influence employees.
Union representatives
There will be stronger rights around reasonable time off and appropriate facilities for union representatives, together with new rights for union equality representatives. An updated Acas Code of Practice has been laid for Parliamentary approval and is expected to take effect from 30th October.
Industrial action
From 30th October, workers taking protected industrial action will receive additional detriment protection. Employers can still manage practical consequences, including proportionate deductions from pay, but need to be careful about the reason behind any action taken.
Our advice
If a union approaches your business: don't panic and don't improvise. Get advice before responding.
We don’t have a union. Do we really need to worry?
Worry? No. Be aware? Absolutely.
Trade union law is becoming more relevant to SMEs that may previously have given it very little thought. Make sure managers understand the basics and know not to react badly to union membership or activity.
Be ready to update onboarding
The new duty to inform workers is coming in October. Wait for the final detail, then make sure your documents and onboarding process are updated.
Get advice early
It’s much easier to get the response right from the beginning than try to undo something later.
Know who will respond
Some processes have short timescales. Decide who will deal with a union approach so a request doesn't sit unnoticed in an inbox.
Review what you already haveRecognition
If you already work with a union, review your arrangements around recognition, representatives, facilities and time off.
So, what should SMEs do now?
Make sure managers understand the basics.
Employees discussing or joining a union isn't a conduct issue, and managers need to know not to react badly or make promises, threats or inappropriate comments.
Know who would deal with a union approach
Some of the new processes have fairly short timescales, so a request shouldn't be left sitting in someone's inbox.
If you already work with a union, review your arrangements.
Particularly around recognition, representatives, facilities and time off.
Get advice early if you're approached.
There are formal rules around access and recognition, and it's much easier to get the response right from the beginning than try to undo something later.
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