In 1871 the Liberals passed the Trade Union Act which recognised unions as legal entities with the right to strike and to have their funds protected by law. This was an important step forward but partially undermined by The Criminal Law Amendment Act of the same year which made picketing illegal. Further progress came with the next Conservative government, which introduced the Conspiracy and Protection of Property Act 1875, which made peaceful picketing legal, and the Employers and Workmen Act 1876, which put employers and employees on an equal legal footing in cases of breaches of contract.

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