Union Reps now have the right to access small business workplaces.

Under the Employment Rights Act reforms, the Government is introducing a statutory right for trade unions to access workplaces for the first time. This is one of the most significant changes to UK industrial relations in decades. Could it be a step too far?

Until now, unions had no general right to enter a workplace unless the employer voluntarily agreed or the Central Arbitration Committee (CAC) ordered access during a recognition ballot.

The Government held a consultation and intends to allow access to workplaces with 20 or more employees. This threshold is designed to exclude the smallest microbusinesses while still expanding union access across the economy.

The Government says the aim is to strengthen worker voice and improve workplace relations. It wants better communication channels with employees, improved employee voice and engagement, to reduce conflict through earlier intervention with support for resolving workplace issues. If the benefits do play out there could be improvements in employee retention and productivity.

On the other hand, it could prove to be yet another barrier to growth with employers simply deciding to keep their staffing levels below the 21 mark. This could be another blow to job creation and growth. In her latest post on LinkedIn the Chief Economist at the IoD says this move is deeply disappointing: “When businesses are bracing for a significant energy cost and supply chain shock, requiring them to simultaneously navigate a significant change in workforce regulation is not a growth-positive move”. You can read the rest of her post here: https://www.iod.com/news/employment-and-skills/iod-press-release-little-evidence-of-government-taking-heed-of-business-concerns-on-trade-union-access/

Maybe firms would have accepted this change with a sigh and shrug of the shoulders had it not been for Making Tax Digital, Minimum and Living wage increases with attendant National Insurance and Pension Contribution changes, which come on top of the other Employee Rights reforms employers are expected to get their heads around, such as day one rights, fire and rehire, unfair dismissal.

A business with 20 employees is often not a big enough business to have HR and finance departments and the in-house capacity and capability to make sure they comply. Our small and micro businesses must not be lumped in with medium and big businesses when it comes to policy decisions. One size does not fit all. All the recent raft of changes does is to stop small and micro businesses investing for growth, reduces the will and ability to create jobs, leaves employers heading for an early exit, and increases the amount that has to be spent outside the business to keep it compliant, rather than being available to spend on the business, so that it could contribute to the growth our economy so desperately needs.

The changes coming:

Trade unions will be able to request access to a workplace, physically or digitally, for the purpose of:

• Meeting workers

• Recruiting members

• Supporting or representing workers

• Organising activity

• Facilitating collective bargaining

(They cannot use access for industrial action.)

How the process works

According to the consultation and legal analysis:

• A union submits an access request using a government template.

• The employer has 5 working days to respond.

• There is a 15‑day negotiation window to agree terms.

• If no agreement is reached, either party can apply to the CAC, which can order access.

• The CAC can impose financial penalties for non‑compliance:

  • Up to £75,000 for a first breach

  • Up to £150,000 for repeat breaches

The CAC can only refuse access if it is “reasonable in all the circumstances”, which legal experts describe as a very high bar.

When will the new right take effect?

The Government intends the new access rights to come into force by October 2026.

What does this mean for small businesses?

Even though the threshold is 20+ employees, many small businesses fall into this category especially in:

• Hospitality

• Retail

• Manufacturing

• Care

• Logistics

• Construction

The likely impact:

1. More union presence in workplaces that have never engaged with unions before

Many small employers have never had union involvement. This reform means unions can now:

• Request access without needing existing members

• Enter workplaces even where membership is low

• Communicate directly with employees

This is a major cultural shift for small employers.

2. Increased administrative and compliance obligations

Small businesses will need to:

• Respond to access requests within 5 days

• Negotiate access terms

• Understand CAC processes

• Manage visits, digital communications, and privacy considerations

• Avoid breaches that could lead to significant fines

For small employers with limited HR capacity, this may feel burdensome.

3. Operational challenges, especially in sensitive or high‑risk environments

Legal analysis highlights concern for sectors where access is restricted for:

• Security

• Health and safety

• Confidentiality

• Customer safeguarding

Examples include:

• Manufacturing

• Financial services

• Hospitality

• Defence

• Healthcare settings

Employers may need to accompany union reps, manage visitor protocols, or restrict access to certain areas.

4. Potential for more union recognition campaigns

Because unions no longer need to show a minimum level of support before gaining access, small businesses may see:

• Increased recruitment activity

• More recognition applications

• More collective bargaining requests

This could change workplace dynamics, especially in sectors with historically low unionisation.

5. Benefits for small businesses

It’s not all risk — there are potential positives:

• Better communication channels with staff

• Improved employee voice and engagement

• Reduced conflict through earlier intervention

• Support for resolving workplace issues

• Potential improvements in retention and productivity

The Government’s stated aim is to strengthen worker voice and improve workplace relations. The new right gives unions much easier access to workplaces with 20+ employees, and the CAC will have strong enforcement powers.

The key is preparation: understanding the rules, having a process for responding to requests, and ensuring managers know what to expect.