What is the redundancy consultation process for employers?
Consulting employees on your redundancy plans is often one of the most uncomfortable and difficult conversations you can have as an employer, but it is important to deal with it properly if the situation arises.
Making redundancies is often a last resort. So, when it comes to it, how should businesses approach it? What is the right way of implementing it from a legal point of view, let alone from an emotional one? Our employment lawyers explain in this blog.
Consulting your staff on redundancy plans
If you do not inform employees in a redundancy situation, any layoffs you make will be deemed unfair, and you could be taken to an employment tribunal.
The core rules on collective consultation are:
- If you are making 20 or more employees redundant within any 90-day period at a single establishment, you must consult with employee representatives and the Redundancy Payment Service at least 30 days before any dismissal takes effect
- If you are making more than 100 employees redundant, the consultation period must start at least 45 days before the first dismissal occurs
- For fewer than 20 redundancies, strict collective consultation rules do not apply, but the employer must conduct a fair, meaningful individual consultation process with each affected employee to avoid accusations of unfair dismissal
What changed under the Employment Rights Act 2025?
There are two significant changes for employers planning redundancies from 2026 onwards:
- The penalty for getting it wrong has doubled. From 6th April 2026, the maximum protective award a tribunal can order for failing to properly consult staff increased from 90 days’ pay to 180 days’ pay per affected employee. That’s uncapped actual pay, not a fixed statutory amount.
- A new organisation-wide threshold is on the way. At the moment, collective consultation is only triggered by numbers at a single establishment. Under the Employment Rights Act, a second trigger is being introduced that will count redundancies across an employer’s whole organisation, not just one site, within a 90-day period. This isn’t yet in force, but multi-site employers should keep an eye on developments. Read more about the consultation here.
How much notice do employers have to give employees?
Once redundancy consultations have taken place, you must give staff the appropriate notice and agree on a leaving date.
You should give employees at least the statutory notice period, based on how long they have worked. It will usually specify the notice period in the employee’s contract of employment.
In terms of the statutory notice period:
- If they have worked for you for one month to two years, the notice period is at least a week
- For two to 12 years, it’s a week’s notice for every full year employed
- And for 12 or more years, the notice is 12 weeks
You can read more on GOV.UK about notice periods and pay.
If your contracts of employment allow for a longer notice period, then you must adhere to the contract and the correct notice period. If you do not, then you may face a wrongful dismissal claim.
Getting redundancy consultation right
With protective awards doubling and further changes to collective consultation thresholds expected over the next year, this is an area where it pays to get legal advice early.
If you’re intending to dismiss any number of employees, it is vital you adhere to the consultation rules. You should also provide staff with sufficient notice, whilst maintaining communication at an organisational level.
How we can help
Our employment law solicitors can advise you on procedures for collective redundancy to ensure that you aren’t taken to an employment tribunal by your employees.
For advice on your redundancy process, call us on 0117 325 2929 or fill out our online enquiry form.
