Drafting arbitration clauses: What you need to know about the Arbitration Act 2025

The Arbitration Act 2025 has received Royal Assent, introducing once-in-a-generation reforms to the Arbitration Act 1996.*

The targeted changes to the statutory foundation of English, Welsh and Northern Irish arbitration law seek to maintain the 1996 Act's international reputation as a "gold standard".

Perhaps the most significant change is the introduction of a default rule for determining the law governing an arbitration agreement where the parties have not made an express choice.

Those responsible for drafting or maintaining their organisation's arbitration clauses should note the changes and take steps now, if appropriate.

The attached briefing discusses the changes to the 1996 Act and offers guidance on next steps.

If you have any questions, please contact the authors of this briefing document or your usual DLA Piper contact.

*The 2025 Act's substantive provisions will enter into force in accordance with implementing regulations which are yet to be promulgated.