Trade unions may not be something many SME employers have had to think about very often. For some businesses, they may still bring to mind heavily unionised industries, large public sector organisations or the industrial disputes of the 1970s and 1980s, rather than something particularly relevant to the day to day running of a smaller business.
That could be starting to change as a series of employment law reforms gives trade unions a more visible role within the workplace. One particularly important change is a new duty requiring employers to provide workers with a written statement informing them about their right to join a trade union. The latest government guidance says this requirement will take effect from 1 January 2027, with new workers receiving the information alongside their written statement of employment particulars. Existing workers will also need to receive or have access to the statement under arrangements set out by the Government.
Greater Awareness Could Change the Conversation
One of the most interesting questions is whether simply making employees more aware of their right to join a trade union will encourage more people to consider membership. Those who remember the 1980s will probably have a fairly clear idea of what a trade union is and what it does, regardless of whether they have ever personally belonged to one, but that may not necessarily be the case for everybody entering the workforce today.
Many younger employees may have spent their entire working lives in organisations where trade unions have barely been mentioned. They may never have dealt with a union representative, worked in a recognised workplace or seriously considered what joining a trade union could mean for them.
Once employers are required to provide information about the right to join a union, some workers are naturally going to become more aware of what membership could offer. They may begin thinking about who could support them if they experienced a workplace problem, whether a representative could assist them during a grievance or disciplinary process and what support might be available during a difficult conversation with their employer.
The Government says the standardised statement will include information about the functions of trade unions, relevant recognised unions or statutory access agreements where applicable, and statutory rights relating to union membership. That means workers will receive more information about trade unions as part of the employment relationship than many currently receive.
Whether that ultimately results in increased membership remains to be seen, but greater awareness could change the relationship between smaller employers, their workers and trade unions.
This Is Part of a Much Bigger Change in Employment Law
It is difficult to look at the trade union reforms in isolation because employment law is changing significantly across several areas. From 1 October 2026, the time limit for bringing most Employment Tribunal claims increases from three months to six months where the relevant event occurs on or after that date.
At the same time, ACAS has been working on a substantial update to its Disciplinary and Grievance Code of Practice. Its consultation on the draft Code closed on 23 September 2026 and ACAS is now reviewing the responses, with the updated Code expected to take effect during 2027.
One of the clearest themes within the draft Code is a stronger emphasis on resolving workplace concerns early and informally wherever that is appropriate. It encourages employers and workers to discuss concerns before they develop into formal processes and recognises that trade union or other workplace representatives may sometimes help people understand the issue and identify a sensible way forward.
Taken together, these developments point towards a workplace environment where greater attention is being placed on dealing with concerns earlier and more constructively, before every disagreement develops into a formal grievance, disciplinary process or Employment Tribunal claim. Trade unions and workplace representatives could potentially play a greater role within those conversations.
When a Trade Union Representative Becomes Part of the Conversation
This is where some SME owners may find themselves dealing with a situation they have never encountered before. Imagine that a manager needs to speak to an employee about their performance and would ordinarily arrange an informal conversation to discuss what has been happening and what needs to improve.
If the employee asks for a trade union representative to be involved, the meeting can suddenly feel quite different to an employer who has never dealt with a representative before. The employee may have somebody alongside them who understands workplace procedures and is specifically there to provide support, while the business owner may be trying to understand what the representative can do, what should be agreed and whether the nature of the meeting has changed.
The legal position depends on the type of meeting taking place. Workers have a statutory right to be accompanied at formal disciplinary and grievance meetings, with a companion potentially being a fellow worker, trade union representative or trade union official. There is not currently a general statutory right to accompaniment during an informal conversation about conduct or performance.
However, the draft ACAS Code goes further by saying that where somebody asks to be accompanied during a meeting where the statutory right does not apply, it is good practice for the employer to consider whether allowing accompaniment could help resolve the issue. This does not automatically mean the request must be accepted in every informal situation, but it does make confident and informed management increasingly important.
This sits alongside wider trade union reforms, including changes relating to workplace access, union recognition and protections for trade union representatives. For smaller employers that have previously had very little contact with trade unions, these developments could make unions a much more visible part of working life.
Employers Need to Feel Confident Too
There is absolutely nothing wrong with an employee seeking support from a trade union, but employers also need to understand the process and feel confident about how they handle the situation. This is particularly important within smaller businesses where the director, owner or line manager may normally deal with employee matters themselves without an internal HR department.
HR support can help an employer prepare properly for meetings, understand what process applies, communicate appropriately with a trade union representative and keep discussions focused on reaching a sensible outcome. Depending on the circumstances, that support might involve helping a director prepare for a meeting, providing guidance during the process, chairing a formal meeting or acting as a point of contact between the business and a trade union.
Often, however, one of the most valuable things HR can provide is reassurance that the presence of a trade union representative does not need to turn an ordinary workplace issue into a confrontation. The objective remains much the same whether a union is involved or not, which is to understand what has happened, follow an appropriate and fair process, communicate clearly with everyone involved and, wherever possible, resolve the problem before it develops into something considerably more difficult.
What Should SME Employers Do Now?
Nobody can say with certainty whether these changes will result in a significant increase in trade union membership, and greater awareness of the right to join a union does not necessarily mean workers will choose to become members. What will change is the amount of information employees receive about trade unions and their workplace rights.
For SME employers that have never had meaningful involvement with a trade union, this makes it sensible to understand how union representatives may become involved in workplace matters and how managers should respond. Employers should also be aware of the wider changes to union access and representation so that the first time they think seriously about these issues is not when a representative is already involved in a difficult employee situation.
The important thing is not to view greater trade union involvement as something that automatically creates conflict. A representative may sometimes help an employee understand a process, communicate their concerns more clearly and participate constructively in finding a resolution. Equally, the employer needs to understand its own responsibilities and be confident that the process remains fair, proportionate and focused on the actual workplace issue.
As employment law continues to change, good workplace relationships and confident management are likely to become increasingly important. Whether trade union membership rises significantly or not, more employers may find themselves having conversations involving union membership, representation and workplace rights that they have never previously needed to consider.
For smaller businesses in particular, preparing for that possibility now is considerably easier than trying to understand the rules for the first time during an already difficult employee situation.
As trade unions become a more visible part of workplace conversations, having clear procedures and the confidence to manage disciplinary and grievance matters fairly will become increasingly important, find out how EC Human Resources can support your business with Disciplinary and Grievance support.