Trade Union Reform and Employment Rights Act 1993

The Trade Union Reform and Employment Rights Act 1993 (c. 19) was a UK labour law that abolished the minimum wages set by sectors through 27 remaining wage councils. It also recast parts of the Employment Protection (Consolidation) Act 1978 and altered the Trade Union and Labour Relations (Consolidation) Act 1992. Most parts were then transferred to the Employment Rights Act 1996.

Trade Union Reform and Employment Rights Act 1993

Act of Parliament
Parliament of the United Kingdom
Long title	An Act to make further reforms of the law relating to trade unions and industrial relations; to make amendments of the law relating to employment rights and to abolish the right to statutory minimum remuneration; to amend the law relating to the constitution and jurisdiction of industrial tribunals and the Employment Appeal Tribunal; to amend section 56A of the Sex Discrimination Act 1975; to provide for the Secretary of State to have functions of securing the provision of careers services; to make further provision about employment and training functions of Scottish Enterprise and of Highlands and Islands Enterprise; and for connected purposes.
Citation	1993 c. 19
Dates
Royal assent	1 July 1993
Status: Current legislation
Text of statute as originally enacted
Text of the Trade Union Reform and Employment Rights Act 1993 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

Main provisions

Abolition of wage councils

The 1993 Act abolished the 27 remaining wage councils, which had operated in sectors such as retail, footwear, agriculture, and hospitality. These councils had existed since the early 20th century, setting legally binding minimum pay rates for workers in low-wage industries. Their abolition left millions of workers without sector-specific minimum wage protection, diminishing both the bargaining power of trade unions and the income security of vulnerable employees.^[1]

Amendments to previous legislation

The Act made significant amendments to the Employment Protection (Consolidation) Act 1978 and the Trade Union and Labour Relations (Consolidation) Act 1992. These changes affected a wide array of labor and union regulations, tightening requirements for union governance, industrial action, and the conduct of ballots, while also redefining the structure of statutory employment rights.^[2]

Transfer of provisions

Many of the rights and obligations established by the 1993 Act were subsequently consolidated into the Employment Rights Act 1996, which today serves as the primary source of statutory employment protection for workers in the UK. This transfer streamlined previous legislation and clarified employees’ rights regarding written particulars, pay, dismissal, and redundancy.^[3]

Detailed explanation

Changes at ACAS

Sections 43 and 44 of the Act fundamentally reformed the role of the Advisory, Conciliation and Arbitration Service (ACAS). ACAS’s authority to intervene in collective bargaining processes by offering advice was removed, narrowing its functions to a strictly advisory capacity. Furthermore, some ACAS services were no longer provided free of charge, and the requirement for the ACAS chairperson to be full-time was abolished. The Act also introduced the concept of “compromise agreements” as a new legal mechanism to resolve certain employment disputes out of court.^[4]

Trade union reforms

The Act implemented a series of reforms aimed at democratizing and regulating trade union operations. Postal ballots became mandatory for all industrial action votes, increasing transparency and member participation. Written consent from employees was required for union dues deductions, to be renewed every three years. For union amalgamations and transfers, stricter rules about notifications and ballot content were introduced to ensure fairness and confidentiality. Regulations around financial administration and membership registers were also tightened to foster accountability.^[5]

Changes in employment rights

New statutory rights for employees were established, such as the entitlement to receive written particulars of the main terms of employment and detailed written pay statements. The Act also provided protection for workers dismissed for asserting statutory rights or leaving work due to imminent health and safety threats, granting them access to compensation. Industrial tribunals were restructured to make dispute resolution more efficient and accessible for all parties.^[6]

Other significant changes

The Act introduced "Limb B" worker status, extending certain statutory rights and protections to non-traditional workers, such as dependent contractors, not previously classified as employees. Additional provisions governed the conduct and consequences of industrial action and set updated rules for redundancy payments and dismissal procedures, reflecting contemporary workplace dynamics.^[7]

Historical context

The Act was part of a broader agenda by Conservative governments in the 1980s and 1990s to reduce government intervention in industrial relations and curb the power of trade unions. While the abolition of wage councils initially left a gap in minimum wage protection, the National Minimum Wage Act 1998 later introduced a universal statutory minimum wage, replacing the previous sector-based approach. Collectively, these reforms compelled unions to adapt to a more regulated and transparent environment, reshaping British industrial relations for decades.^[8]

Legacy

The provisions of the 1993 Act continue to influence UK employment law, primarily via the Employment Rights Act 1996 and subsequent legislation. The removal of sectoral wage-setting and the emphasis on individual statutory rights marked a decisive turn in labor regulation, with the Act widely regarded as a milestone in British legal history concerning the rights of workers and the role of unions.^[9]

See also

• UK labour law