March 20, 2026

Are you ready for increased trade union activity across the social care sector?

The Employment Rights Act 2025 represents one of the most significant shifts in UK employment and industrial relations law in over 50 years and the impact on social care providers will be significant. The reforms increase union rights, enhance worker protections and transform collective bargaining. 

Key changes

  • Duty to inform workers: care providers will be required to expressly inform workers of their right to join a trade union.-
  • New union access rights: unions gain new rights to access workplaces to meet, represent and recruit workers as new union members. If you don’t agree an  access agreement voluntarily unions may apply to the Central Arbitration Committee (‘CAC’) for a statutory access  agreement to be imposed upon you. This new right effectively enables trade unions to get a foothold in your organisation with a view to increasing membership and then requesting or applying for formal recognition for collective bargaining.
  • Reduced thresholds for statutory recognition: it will become easier for unions to secure statutory recognition with your organisation and require you to collectively bargain. With support thresholds for making an application for statutory recognition being reduced, if you don’t voluntarily agree to recognition it could be forced upon you by the CAC.
  • Sectoral collective bargaining and Fair Pay Agreements: A new Adult Social Care Negotiating Body will be introduced to collectively bargain on behalf of the sector and agree annual Fair Pay Agreements, to improve the pay and terms and conditions of the care workforce.  This could include increases to minimum pay rates increased rates for sleepins and travel time, as well as enhanced holiday and sick pay entitlements. These agreements will be legally binding on care providers and automatically incorporated into employment contracts, with the first agreement expected April 2028.

Impact on care providers

The care sector historically has low levels of union representation. However, union presence in social care is likely to rise significantly, subject possibly to the resources of unions to capitalise on their new rights. Unions may initially target larger providers, who offer an improved return on investment in terms of membership fees and impact.

The most significant risk for providers is increased labour costs arising from pay agreements and increased collective bargaining and the significant and real risk that these will not be reflected in increased funding rates from local authorities and other funders.

Practical steps for care providers

Care providers should prepare now by: 

  • Developing strategies for responding to requests for union access and recognition and taking legal advice on the terms of access and recognition agreements  
  • Considering whether to create alternative forms of employee representation, such as employee forums  
  • Upskilling HR and leadership teams in union relations and dispute management  
  • modelling the financial impact of upcoming Fair Pay Agreements to inform future negotiations with local authorities.  
  • Joining networks like RWK Goodman’s Social Care HR Leaders Network can also help share best practices and insights, ensuring HR Leaders are ready for the upcoming changes. 

Find out more about our specialist Health & Social Care team

For further advice and assistance contact our specialist Health & Social Care team can help with all of the above and provide strategic advice on how to prepare for and manage these changes.  

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