Trade Union Related Clauses in a Commercial Contract

Trade Union Related Clauses in a Commercial Contract


A recognised, independent trade union has immunity from legal action where lawful industrial action is taken by the union in anticipation or furtherance of a legitimate trade dispute.

However, that immunity may be lost if the industrial action is taken either with the intention of exerting pressure to put a union-recognition term in a commercial contract for goods or services, or where the union interferes in the performance of a contract with a view to enforcing such a provision.

Any term to this effect in such a contract is unenforceable if it seeks to impose union, non-union or union-recognition requirements or if it imposes restrictions on dealing with a particular trading partner on trade union-related grounds.

If you are asked to agree to such a clause which you consider might be unenforceable, you should initially raise the matter with the other party pointing out the legal problems.

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