The Arbitration Act 2025 came into force on 1 August 2025, strengthening England & Wales as global arbitration hubs. Learn the key changes and how RLK can guide your business through them.
The UK Government has confirmed that the Arbitration Act 2025 came into force on 1 August 2025, following Royal Assent on 24 February 2025. This legislation is a significant development for arbitration in England & Wales, reinforcing the UK’s position as a world-leading seat for dispute resolution alongside other international arbitration centres such as Singapore, Hong Kong, Paris, New York, and Dubai.
Rather than replacing the Arbitration Act 1996, the new 2025 Act refines it, bringing English arbitration law in line with international best practice while ensuring it remains competitive on the global stage.
Why the Arbitration Act 2025 Matters for England & Wales
The UK remains a top-tier arbitration hub, frequently chosen as the seat for cross-border disputes due to its impartial courts, skilled arbitrators, and predictable legal framework. The 2025 Act enhances this reputation by:
Key Reforms in the Arbitration Act 2025
While the reforms are evolutionary rather than revolutionary, they introduce important practical changes, it also makes clear that an arbitration agreement stands as a separate contract within a main contract. Even though it may be written merely as one clause among many others. It can therefore be subject to a different governing law compared to other clauses.
Governing Law of Arbitration Agreements
Where parties have not specified a governing law for their arbitration agreement, the law of the seat, in most cases English law for London/Birmingham seated arbitrations, will apply by default.
This change provides clarity for contracts involving parties from multiple jurisdictions.
Arbitrator’s Duty of Disclosure
Arbitrators will now have an ongoing obligation to disclose any circumstances that could reasonably create doubts about their impartiality.
This safeguard strengthens trust in London-seated arbitrations and ensures transparency in proceedings.
Increased Arbitrator Immunity
Arbitrators will have greater legal protection from liability, particularly in cases of resignation, unless proven unreasonable.
This reform encourages highly experienced arbitrators, both from England & Wales and internationally, to participate in disputes without fear of undue legal consequences.
Impact on International Businesses
For companies operating across borders, from European headquarters in Paris or Frankfurt to Asia-Pacific hubs like Singapore or Hong Kong, choosing England and Wales as the seat of arbitration becomes even more attractive. Benefits include:
Steps to Take
If your contracts involve arbitration clauses, especially if England or Wales is the seat, you should:
FAQs on the Arbitration Act 2025
When will the Arbitration Act 2025 apply?
From 1 August 2025, for arbitration agreements seated in England & Wales.
Does it replace the Arbitration Act 1996?
No, it amends and strengthens certain provisions while keeping the 1996 Act as the primary framework.
How does this affect international contracts?
It reduces uncertainty and aligns English arbitration law with global norms, making England and Wales a competitive choice against hubs like Singapore, Hong Kong, and Paris.
Do I need to change my arbitration clauses?
Yes, if your arbitration clause does not specify a governing law for the arbitration agreement.
Who should I contact for expert advice?
Our RLK Dispute Resolution and Commercial Litigation Team can advise on all legal and practical implications.
Prepare Your Contracts for the Arbitration Act 2025
The reforms shape how disputes are resolved in England & Wales. Now is the time to review your arbitration clauses and ensure they protect your commercial position.
RLK’s Dispute Resolution and Commercial Litigation specialists work with businesses across the UK and internationally to deliver robust, strategic arbitration advice. Speak to us today to safeguard your agreements and stay ahead of the changes.
📞 0121 450 7800 | ✉ enquiries@rlksolicitors.com
Satish is the Managing Director of RLK Solicitors and one of the firm’s founding members, Satish also Heads up the Dispute Resolution & Litigation Departments. With nearly three decades of experience, he specialises in high-value and complex commercial cases. Clients frequently request him by name, and he is highly recommended for cases that require creative thinking, determination, and a fast-paced approach.
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