What are the rules on redundancy consultation?
Employers should consult every affected employee before deciding on redundancies. If 20 or more redundancies are proposed at one establishment within 90 days, collective consultation with representatives must begin at least 30 days (45 days for 100 or more) before the first dismissal, and form HR1 must be submitted. Failure can lead to a protective award of up to 180 days' pay per employee.
Individual consultation
GOV.UK says there are no set rules for fewer than 20 redundancies, but a tribunal could find dismissals unfair without proper consultation. Acas recommends meeting each affected employee in private at least once and discussing the proposals, ways to avoid or reduce redundancies, and the selection criteria. Consultation does not have to end in agreement, but suggestions should be genuinely considered.
Collective consultation
- Consult trade union representatives where a union is recognised; otherwise elected or existing employee representatives
- Start in good time: at least 30 days before the first dismissal for 20 to 99 proposed redundancies, and at least 45 days for 100 or more
- Disclose in writing the reasons, numbers and categories of employees, selection method, how dismissals will be carried out and how redundancy pay will be worked out
- Consult about avoiding dismissals, reducing numbers and mitigating the consequences, with a view to reaching agreement
- Notify the Redundancy Payments Service on form HR1, 30 or 45 days before the first redundancy depending on numbers
Protective awards
If an employer fails to collectively consult, a tribunal can make a protective award. Since 6 April 2026 the maximum is 180 days' pay for each affected employee, doubled from 90 days. Acas notes that two years' service is not needed. GOV.UK says failing to notify the Redundancy Payments Service can lead to an unlimited fine.
Changes ahead
The government's timeline lists an organisation-wide collective redundancy threshold, expected in April 2027 and subject to Parliament. The legislation provides for the threshold number to be set by regulations and not to be lower than 20.
The law
“with a view to reaching agreement with the appropriate representatives…”
“but shall not exceed 180 days…”
“the regulations may not provide in any case for the threshold number of employees to be lower than 20…”
Sources
- Making staff redundant: Redundancy consultations · GOV.UK
- Step 4: Hold consultations - Managing a redundancy process · Acas
- Discussing and negotiating an offer - Settlement agreements · Acas
- Sickness and ending employment - Sick leave · Acas
- Plan to Make Work Pay and Employment Rights Act: timeline update · GOV.UK
- Trade Union and Labour Relations (Consolidation) Act 1992, section 195A · legislation.gov.uk
General information for employers in Great Britain, not legal advice. Check the official sources for your situation.
- Maximum protective award doubled from 90 to 180 days' pay
- Organisation-wide collective redundancy threshold expected (subject to Parliament)
Future dates are expected dates and depend on Parliament.
What employers can do
- Count all proposed redundancies, including voluntary ones, within any 90-day period
- Identify or arrange the election of appropriate representatives
- Prepare the written disclosure of information before consultation starts
- Submit form HR1 on time
- Hold individual meetings and record how suggestions were considered
- Keep employees who are off sick up to date during the process
Recent tribunal decisions on this topic
Tribunal tracker- Milton Garden Machinery Ltd Breach of contractRedundancyUnlawful deduction from wages Read the decision on GOV.UK
- Bolton NHS Foundation Trust Ltd Disability discriminationRedundancyUnfair dismissal Read the decision on GOV.UK
- Essential Pensions Group Ltd Breach of contractRedundancyUnlawful deduction from wages Read the decision on GOV.UK
Being listed does not mean a claim succeeded. Read the decision for the outcome; decisions can be reconsidered or appealed. If a listing concerns you, or a decision has since been anonymised or removed, tell us and we will review it and remove it where appropriate.
Related answers
- What does TUPE mean for employers? When a business or service transfers to a new employer, TUPE usually moves the assigned employees across automatically on their existing terms, with continuous service and the old employer's liabilities. Both employers must inform and consult representatives, the old employer must pass on employee information at least 4 weeks before transfer, and dismissals because of the transfer are automatically unfair.
- What notice must employers give, and when can they use garden leave? After one month's service, employers must give at least one week's statutory notice, rising to one week per full year from two years' service, up to 12 weeks after 12 years. A longer contractual notice period applies if the contract says so. Garden leave means telling an employee not to work some or all of their notice while paying them as usual.
- What are the new rules on fire and rehire? From March 2027 (expected, subject to Parliament), dismissing an employee for refusing a change to core terms such as pay, hours, pensions, leave or certain shift patterns will be automatically unfair, unless the employer meets a narrow financial difficulties exemption. Dismissing employees to replace them with non-employees doing substantially the same work will also be automatically unfair in most cases.