In this briefing, Julia Nwaneke discusses the rise in trade union activity across the charity sector and what employers need to know about recognition, statutory changes and practical alternatives.
Across the charity sector, there is an apparent rise in trade unions seeking recognition for collective bargaining on employee terms (including pay, hours of work and holidays).We’ve also seen an increase in the threat of union-supported strike action. This increase in union activity reflects the pressures many charities are under. Funding cuts, a challenging job market, the high cost of living and frequent restructures can prompt staff to look for additional support. The Employment Rights Act 2025 is expected to accelerate this trend. New laws will make it easier for workers to take part in union activity and for unions to be formally recognised. As these changes take effect, charities may see more interest from unions and it will be important for trustees and managers to have an understanding of trade union law.
What does a union recognition agreement usually cover?
When an employer recognises a trade union, it is agreeing that the union can negotiate on behalf of some or all of the organisation’s workers (the “bargaining unit”). Recognition applies to specific matters and gives the union a formal role in representing staff interests.
A recognition agreement typically sets out the areas where the union will be involved in collective bargaining. These usually include issues such as pay, working conditions and redundancy collective consultation. It also confirms how many union representatives will be selected from among the workforce to represent staff.
Recent changes as a result of the Employment Rights Act 2025 introduce new duties on employers, including the requirement to inform workers that they are entitled to join a trade union and expanded rights of access to the workplace for union representatives. These changes reflect a wider direction of travel in employment law, which aims to make trade unions a more central part of workplace structures.
What is voluntary recognition?
Most recognition agreements are entered into on a voluntary basis. This process begins with a request from the union asking the employer to recognise it. For the request to be valid, the union must make a request in writing and must identify the bargaining unit - the group of workers it wishes to represent. This may be the whole workforce or a defined section of it (for example, people doing a particular type of work or people based at a particular site). The request must also set out the specific matters on which the union wants to carry out collective bargaining. Employers must employ at least 21 workers for a request for voluntary recognition to be valid, and staff working at an associated employer need to be counted in this number.
Benefits of recognising a union
Recognising a trade union can offer several practical advantages for employers. It can help workplace relations by giving staff a structured way to feel heard and considered. For many organisations, particularly in the charity sector, this can also support a more positive public image.
There can also be cost‑related benefits. A recognition agreement provides an agreed system for negotiating contentious issues, which can lead to earlier intervention in disputes and clearer communication during processes such as redundancy. These factors can reduce the time and resources spent managing individual complaints or challenges.
Cons of recognising a union
There can be disadvantages to consider. Employers must invest time and resources to follow the processes set out in the recognition agreement. In addition, a union’s role is to protect employee rights, even where this may not align with the organisation’s commercial or operational interests. For example, a trade union may push for higher pay awards than individual employees would have suggested.
Industrial action
Some charities may be hesitant to recognise a union as they associate it with an increased risk of industrial action. However, it is important to note that employees can participate in an official strike lawfully organised by a certified trade union – even if that union is not recognised by the employer. If an employee is dismissed for taking part in such a strike, the dismissal will be automatically unfair and the Employment Rights Act 2025 will introduce increased protections for staff who participate in industrial action. Whether there is a recognition agreement in place or not does not affect these protections.
What happens if you refuse to voluntarily recognise?
If an employer refuses voluntary recognition, the union may respond in several ways.
They may call strike action in an attempt to pressure the employer into recognising it. In addition to the operational impact on the organisation, this may also have reputational consequences and affect funding for charities. For example, if the strike is reported on the news, donors may be concerned that staff at the charity are not being treated well and may be less likely to offer support.
Another route is to apply to the Central Arbitration Committee (CAC) for statutory recognition. This process, which follows a detailed statutory scheme, allows an independent trade union to become recognised even where the employer objects. Statutory recognition covers collective bargaining only on pay, hours and holidays for the workers within the defined bargaining unit. Changes to the statutory recognition scheme came into force on 6 April 2026 and make this process easier for unions.
The key disadvantages of starting the relationship through a statutory route is that the union and employer begin on less positive terms, and the employer has limited influence over the arrangements.
However, at various stages of the statutory process, the parties can choose to withdraw and instead enter into a voluntary recognition agreement.
Alternatives to union recognition
Some organisations choose not to recognise a trade union but still want to create meaningful ways for staff to share their views. There are several alternatives that can support open communication and help employees feel involved in workplace decisions.
One option is to establish staff forums, where representatives are elected by colleagues and consulted on specific issues such as policies or wellbeing. These forums can provide a structured way for staff to raise concerns and contribute to discussions that affect their working environment.
Another approach is to introduce employee champions or ambassadors. These are volunteers from within the workforce who act as a link between staff and management. Their role is to gather views, share information and help ensure that staff perspectives are considered.
Conclusion
In the current charity landscape, many workers are looking for ways to secure better pay, improved conditions and more manageable workloads. At the same time, organisations across the sector are facing redundancies and financial pressures. These factors mean that staff may increasingly look for external support in difficult discussions, consultations or negotiations with their employer. As a result, employees may be more interested in joining a trade union and unions are increasingly seeking formal representation in the workplace.
About Julia
Julia Nwaneke is a associate in the charity law and not for profit team with a focus on employment law and data protection law.
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