Employment Rights Reforms Drive Major CAC Expansion
- 3 Min Read
The Central Arbitration Committee (CAC) has appointed 23 new members as it prepares for the next phase of the Employment Rights Act 2025. With appointments taking effect from 8 July 2026, the expansion is expected to strengthen the UK’s employment relations framework as reforms to trade union recognition, collective bargaining and workplace rights begin to take effect.
- Author: HRD Connect
- Date published: Jul 8, 2026
- Categories
The UK’s employment relations system is preparing for one of its most significant periods of change in recent years, with the Central Arbitration Committee (CAC) appointing 23 new members ahead of the next phase of the Employment Rights Act 2025.
The appointments, which take effect on 8 July 2026, are intended to strengthen the CAC’s capacity as it takes on an expanded role in administering new workplace rights introduced through the Employment Rights Act.
The announcement comes as employers prepare for a series of reforms that will reshape trade union recognition, collective bargaining and workplace relations over the coming months and years.
Supporting a growing workload
The CAC is an independent statutory body responsible for resolving disputes relating to trade union recognition, collective bargaining and information and consultation arrangements.
Its responsibilities are expected to increase significantly as provisions within the Employment Rights Act come into force.
The legislation includes measures to strengthen trade union rights, simplify statutory recognition processes and expand workplace access for union representatives. Together, these reforms are expected to generate a higher volume of applications and workplace disputes requiring independent determination.
The appointment of 23 additional members represents one of the committee’s largest recent expansions and reflects the scale of the changes being introduced.
Employment relations are entering a new phase
The expansion follows a series of wider government measures aimed at strengthening employment protections and modernising workplace regulation.
Alongside the establishment of the Fair Work Agency, which will oversee enforcement of several employment rights, the Employment Rights Act is introducing reforms covering unfair dismissal, zero-hours contracts, statutory sick pay, trade union access rights and collective redundancy consultation.
Collectively, these measures represent one of the most significant overhauls of UK employment law in a generation.
For employers, this means employment relations are likely to become an increasingly strategic area of organisational governance rather than simply a matter of legal compliance.
What this means for employers
While the CAC’s expansion will not directly change employer obligations, it signals that the government expects greater demand for formal dispute resolution and statutory recognition processes.
Organisations with recognised trade unions, or those operating in sectors where union activity is increasing, may see greater engagement with collective bargaining frameworks over the coming years.
Recent research from WorkNest found that 56% of organisations with no previous experience of dealing with trade unions expect that to change as a result of the Employment Rights Act reforms, yet only 1% believe they are fully prepared.
The recruitment of additional CAC members suggests the government is also preparing for that increase in activity.
Preparing for a changing employment landscape
The appointments reinforce the broader direction of employment policy in the UK.
Rather than focusing solely on enforcement, the government’s reforms are strengthening the institutions responsible for supporting collective employment rights and resolving workplace disputes.
For organisations, this places increasing importance on maintaining effective employee relations, ensuring managers understand evolving legal obligations and reviewing workplace policies before further provisions of the Employment Rights Act come into force.
As the Employment Rights Act continues to be implemented throughout 2026 and 2027, the expansion of the Central Arbitration Committee provides another indication that the UK’s employment relations framework is entering a new phase.
For employers, the focus is shifting from understanding legislative change to preparing for how those reforms will operate in practice.
