The Act contains rules on the functioning and legal status of trade unions, the presumption that a collective agreement is not binding, and immunity of unions who take strike action in contemplation or furtherance of a trade dispute.

TULRA both repealed and replaced the Industrial Relations Act 1971 which had been introduced by Heath's employment minister Robert Carr.

The 1971 Act had faced massive opposition from the trade unions, whose industrial action contributed to Heath's implementation of the Three-Day Week and ultimately to the defeat of the government.

[2] The victorious Labour Party promptly repealed the Industrial Relations Act 1971, replacing it with their own legislation that was to incorporate the principles within Barbara Castle's 1969 white paper, "In Place of Strife".

[3] The Trade Union and Labour Relations Act 1974 was itself repealed, being replaced by the Trade Union and Labour Relations (Consolidation) Act 1992, whose main provisions mirror its predecessor's, albeit now with more complexities and restrictions.