Small Businesses Can Rest Easy: New Union Access Rules Don't Apply to Them
New government regulations granting trade unions access to workplaces will not affect businesses with fewer than 21 employees, according to employment law experts.
Small business owners concerned about new government rules granting trade unions access to their employees can breathe a sigh of relief, as the regulations specifically exclude businesses with fewer than 21 employees. The new rules, set to take effect on October 30, 2026, aim to provide trade unions with the right to visit and communicate with workers on company premises.
However, employment law experts clarify that the Central Arbitration Committee (CAC), which can rule on access requests if an employer disagrees, cannot impose an access agreement on businesses with fewer than 21 workers. This threshold applies to workers, which can include some contractors and agency staff, not just employees. Additionally, headcounts may be calculated across associated employers, meaning businesses cannot circumvent the rule by splitting staff between connected companies.
While the government has stated the threshold will be kept under review, for businesses currently employing four or fewer individuals, there is no statutory right for union access. Unions may still request voluntary access, but employers are not compelled to agree under the new statutory process if they remain below the 21-employee threshold.
Even when the rules do apply, union access does not grant representatives the right to establish a permanent presence or automatically obtain workers' personal contact details without consent. Any arrangements must not unreasonably interfere with the business operations and can encompass meetings, advice, recruitment, representation, or facilitating collective bargaining.
Fines for breaching statutory access agreements or CAC orders can be substantial, with penalties ranging from £75,000 for a first offense to £500,000 for subsequent orders. However, these penalties would not apply to a small business refusing an initial request under the new regulations.
Business owners are advised to maintain accurate records of all staff, including their employment status, especially if utilizing contractors, agency staff, or operating through connected companies. It is also crucial for employers to continue upholding their existing duties regarding employee health and safety, and adherence to rights under the Equality Act and Employment Rights Act. For any uncertainty, consulting with an HR consultancy or employment lawyer is recommended.