Trade union influence set to surge across the social care sector
The introduction of the Employment Rights Act 2025 represents one of the largest changes to UK employment and industrial relations law in decades, with reforms set to modernise union rights, strengthen worker protections, and reshape collective bargaining.
What are the key changes to trade union rights?
The Key Changes Include:
- 1. Duty to Inform Workers
From October 2026, care providers will be under a new duty to inform workers of their right to join a trade union, with the aim of increasing workers’ awareness of the right to join a union and increase union representation.
- 2. New Rights of Access for Unions
From October 2026, trade unions will have new rights to access workplaces. The aim is to enable unions to meet, support, represent, recruit or organise workers, even if they are not currently union members and to facilitate collective bargaining.
The proposals encourage voluntary access agreements between care providers and trade unions, which out the terms on which unions will have access. If agreement can’t be reached voluntarily, unions will be able to apply to the Central Arbitration Committee (‘CAC’) for a determination on the issue, with the effect that a statutory access agreement could be imposed upon the care provider. Failure to comply with the terms of the access agreement could lead to fines, which it is proposed will be up to £75,000.
- 3. Reduced Thresholds for Union Recognition
With effect from 6 April 2026, it will be easier for unions to impose statutory recognition on care providers, requiring them to collectively bargain.
Unions will usually approach care providers seeking a voluntary recognition agreement in the first instance. However, if this is not agreed, the union may apply to the CAC for a statutory recognition agreement to force the care provider’s hand.
Currently, to succeed with an application for statutory recognition a trade union must demonstrate that (i) 10% of the proposed bargaining unit are union members and (ii) a majority of workers in the bargaining unit are in support of recognition. In future, the first threshold could be reduced to as low as 2% and the second threshold will be removed.
Currently, where the CAC orders a recognition ballot, it must be satisfied that recognition is supported by a majority of workers voting and at least 40% of the workers in the bargaining unit. In future these thresholds will be removed and only a simple majority of workers voting will be required.
These reforms make it easier for unions to secure statutory recognition even when current union representation is very low.
- 4. Sectoral Collective Bargaining and Fair Pay Agreements
The Act introduces sectoral collective bargaining for the care sector for the first time. A new Adult Social Care Negotiating Body will be created, with worker representatives (trade unions) and provider representatives tasked with agreeing an annual Fair Pay Agreement, setting minimum standards for pay, terms and conditions and other employment matters.
The Fair Pay Agreement will be binding on all adult social care providers and will be automatically incorporated into workers’ employment contracts.
Fair Pay Agreements could include an increase in the pay floor for care workers to a rate above the National Living Wage, a global percentage pay uplift or the introduction of pay scales aligned to a career development framework. A requirement to pay a minimum hourly rate for sleep-in shifts and for travel time in homecare, and enhanced holiday entitlement and sick pay are also likely to be top of the trade union agenda.
The first Fair Pay Agreement is due to come into force in April 2028.
Impact on Care Providers
- 1. Increased Union Access and Recognition
The care sector historically has low levels of union representation; however, new access rights will get them a foot in the door, so that they can garner worker support, and then request formal recognition.
Unions are likely to start by approaching the largest care providers where the return on investment (employee trade union fees) is higher. In fact, this is already happening. The extent, or possible limitations, in the unions resources will determine how quickly this trickles down to small and medium sized providers.
- 2. Pay and Cost Pressures
The most significant risk for care providers is increased labour cost exposure arising from sectoral pay agreements and stronger collective bargaining leverage.
The combination of Fair Pay Agreements, increased recognition and collective bargaining, on top of annual National Living Wage rises, mean that employee costs are likely to continue to rise. Given existing funding constraints in publicly commissioned
care, providers may face margin compression unless fee uplifts from commissioners align with increased workforce costs. The unfortunate reality is that they won’t be.
- 3. Greater HR and Compliance Burden
Preparing for and implementing the proposed reforms will require additional resource, as will formally recognising a trade union to ensure a constructive working relationship and effective collective bargaining.
Providers with limited experience of collective bargaining may face a steeper learning curve, increasing the risk of disputes during early engagement phases. Upfront advice and training is recommended to help providers stay in control. Providers will need robust contingency planning to mitigate the risks of disputes, or in the worst case, strike action.
- 4. Potential Benefits
Increased union recognition and employee representation has the potential to improve employee relations and engagement.
Improved pay structures and terms and conditions could help improve recruitment and retention in the sector, thereby reducing agency and turnover costs. Whilst the £500m funding allocated for the first Fair Pay Agreement is not likely to have a significant impact in this regard (DHSC’s impact assessment estimates it could fund a pay uplift for front line care staff of 2.8%) the cumulative effect of annual Fair Pay Agreements could start to move the dial and make the sector more competitive on pay and reward.
Practical Steps for Care Providers
Care providers should consider early preparatory action, including:
- 1. Understanding the detail of the proposed reforms when the regulations are published.
- 2. Developing an employee representation strategy, including your approach to access and recognition and how to manage an approach by a trade union.
- 3. Putting in place an employee representative body/forum to strengthen employee engagement and communication between workers and senior leaders, if your preference is to avoid union recognition.
- 4. Upskill your HR and senior leadership teams on collective bargaining, managing union relationships and handling disputes.
- 5. Take legal advice before signing access and recognition agreements.
- 6. Starting to model potential financial exposure under future Fair Pay Agreements and ensure these additional costs are reflected in future local authority fee negotiations and contracts.
- 7. Joining a peer network, such as the Social Care HR Leaders Network, to stay up to date with the reforms, and share ideas, experiences and best practice for managing and implementing them.
These reforms represent a significant shift toward a more collective and sector-focused industrial relations framework in adult social care. Being pro-active and developing a strategy for manging the changes will put providers in good stead to manage the changes.
Written by:
James Sage
Partner & Co-Head of Health & Social Care, RWK Goodman
M: 07508 297597
E: [email protected] Profile: https://www.rwkgoodman.com/our-people/james-sage/