The Arbitration Act 2025 – Key Changes Effective 1 August 2025

Introduction

The Arbitration Act 2025, which comes into force on 1 August 2025, introduces six key amendments to the Arbitration Act 1996. These changes refine rather than overhaul the existing framework, ensuring greater clarity and procedural efficiency in arbitral proceedings.

Governing Law of the Arbitration Agreement

The default rule will now provide that the arbitration agreement is governed by the law of the seat, reversing the current common law position that the substantive contract law applies. Parties may, however, expressly opt out of this rule.

Enhanced Duty of Arbitrator Disclosure

Arbitrators will be under a continuing obligation to disclose any circumstances that could give rise to justifiable doubts as to their impartiality. This extends not only to actual knowledge but also to what they ought to know, necessitating thorough ongoing due diligence.

Extended Arbitrator Immunity