As part of redundancy planning, you propose a restructure, then another department needs to cut costs. If those proposals involve 20 or more redundancies at one establishment within 90 days, collective redundancy consultation is required.
Several smaller decisions can create one legal obligation, even when different managers make them. Your timetable needs to allow employee representatives to challenge the proposals before dismissals take effect.
Start by bringing the numbers, locations and proposed dates together.
Key takeaways
- Collective consultation applies to proposals for 20 or more redundancies at one establishment within a rolling 90-day period.
- Consultation must begin at least 30 days before the first dismissal for 20 to 99 redundancies, or 45 days for 100 or more.
- You must consult appropriate representatives, submit form HR1 and consult employees individually. For relevant dismissals taking effect from 6 April 2026, the maximum protective award is 180 days’ pay per affected employee.
When collective redundancy consultation is required
The duty under s.188 comes from section 188 of TULRCA 1992, which implements EU rules on collective redundancies. This guidance covers Great Britain. Northern Ireland has separate employment legislation.
Count dismissals across a rolling 90 days
The threshold concerns proposed dismissals, not your total headcount or how many redundancies you announce together.
Look backwards at recent redundancies and forwards at planned dismissals across the 90-day period. Earlier redundancies can count within the rolling window, although dismissals already covered by collective consultation have separate counting rules. Splitting announcements doesn’t automatically separate the proposals.
Dismissal and re-engagement, often called fire and rehire, can also count. Employees may return immediately on less favourable terms, but ending their existing contracts can still trigger collective consultation.
Identify the establishment employees belong to
An establishment is generally a relatively permanent, stable unit with its own workforce and organisational structure. It doesn’t need independent management or separate economic or administrative status.
A workplace may qualify, but remote working and hybrid arrangements need closer assessment. A department or team may be relevant, depending on how employees are assigned and organised. Remote working alone doesn’t determine which unit an employee belongs to; consider their assignment and the unit’s structure.
The Employment Rights Act 2025 provides for an additional organisation-wide trigger. That wider trigger isn’t yet in force in November 2026.
Under the Retained EU Law (Revocation and Reform) Act 2023, higher courts may depart from assimilated case law. That power to depart from assimilated case law doesn’t automatically change the establishment test. Get advice where the boundary affects whether you reach 20.
Set the consultation timetable before giving notice
The minimum period runs backwards from the date the first dismissal takes effect. It isn’t a deadline for finishing every discussion.
The table shows the minimum period before the first dismissal for consultation and the HR1 notification deadline.
| Proposed redundancies at one establishment within 90 days | Consultation must begin | HR1 notification deadline |
|---|---|---|
| 20 to 99 | At least 30 days before the first dismissal | At least 30 days before the first dismissal |
| 100 or more | At least 45 days before the first dismissal | At least 45 days before the first dismissal |
For collective redundancies, these lead times apply when the thresholds are met at one establishment within 90 days. Consultation may need longer if elected spokespeople raise alternatives that need proper consideration.
Submit form HR1 to the Redundancy Payments Service before issuing any termination notices and within the applicable 30-day or 45-day deadline. Give representatives a copy. The government’s HR1 notification guidance explains the reporting duty.
Allow time for elections before the collective redundancy process starts. An announcement or invitation to elect spokespeople doesn’t, by itself, begin meaningful consultation.
Keep consultation separate from dismissal notice. Complete consultation before issuing redundancy notices, then provide each employee’s statutory or longer contractual notice entitlement.
Your human resources, operations and finance teams need the same timetable. Otherwise, payroll may budget for departures before the consultation process can lawfully finish.
Choose representatives and share the proposal
Consultation must involve people authorised to speak for affected employees. Choosing convenient attendees won’t satisfy that requirement.
Use recognised unions or properly elected representatives
Where you recognise a recognised trade union for the affected employees, consult its officials.
Without a recognised union, existing employee representatives can act only if their authority covers this consultation. Otherwise, employees must elect spokespeople under the statutory rules.
Employees need a fair opportunity to stand and vote. The arrangements must provide enough elected spokespeople, cover the affected groups and allow voting in secret with accurate counting.
Give delegates paid time and access to employees so they can gather views. An election without time to do the job leaves a gap in the process.
Provide the required information in writing
Those authorised to speak for affected employees need the reasons for the proposals, the number and descriptions of employees you propose to dismiss, and total employee numbers in those descriptions at the establishment.
You must also explain the proposed selection method, dismissal procedure and timetable, and how you’ll calculate any redundancy payment beyond the statutory entitlement.
Include the required information about agency workers: how many are working for you, where they’re working and the work they do.
Share enough supporting detail for delegates to question the proposal. That includes the proposed selection pools, criteria and scoring approach.
Information alone isn’t consultation. Those authorised to speak for affected employees need time to understand it, speak to employees and put alternatives forward before decisions become final.
What happens during consultation meetings
Meetings are part of the consultation process and should test the proposal while changes remain possible. The statutory aim is to consult with a view to reaching agreement.
Discuss alternatives before settling the outcome
Explain the business problem, proposed structure and expected savings. Representatives can then question whether the proposed dismissals are necessary.
The collective redundancy process requires you to consider ways to avoid dismissals, reduce their number and limit their consequences before settling the outcome. Recruitment freezes, voluntary redundancy, redeployment or agreed reductions in hours may deserve consideration.
You don’t have to accept every suggestion. You do need to examine workable alternatives and explain why you accept or reject them.
Keep a record of questions and decisions
Agree how employee spokespeople will submit questions, when you’ll respond and how employees will receive updates.
Record proposals, supporting figures, responses and changes. If finance rejects an alternative because it won’t deliver enough savings, keep the calculation behind that decision.
A consultation record needs to show what employees could influence and how their proposals were considered. Attendance records alone won’t show that.
A signed-off outcome presented at the first meeting leaves little room for genuine consultation.
Run individual consultation alongside the collective process
Collective consultation doesn’t replace discussions with each affected employee. Spokespeople address shared proposals, while individuals need a chance to discuss their own position.
Hold at least one private consultation meeting with every employee at risk. Further meetings may be needed if questions remain unresolved. Employment law doesn’t set a universal number of individual meetings.
Explain why their role is at risk, their selection pool, provisional scores and available alternatives. Let them review and challenge the selection process, correct factual errors and suggest suitable vacancies or other arrangements.
The government’s employee consultation guidance describes the right to discuss reasons and alternatives. Keep an individual record of each discussion.
Give employees clear payment breakdowns, too. Our redundancy calculator supports calculations covering statutory redundancy pay, notice periods and basic awards. Clear figures help employees understand the information, but calculations don’t replace consultation.
Consider suitable alternative employment and any priority rights before confirming dismissal.
What happens if you get the process wrong?
An employment tribunal can make a protective award where an employer fails to meet collective consultation duties.
For relevant dismissals taking effect on or after 6 April 2026, the maximum increased from 90 to 180 days’ actual pay per affected employee. The government’s protective award update confirms the change.
The two figures describe different legal periods. Guidance stating 90 days without explaining the change is out of date for dismissals covered by the new maximum.
An award isn’t automatic at the maximum level. The tribunal considers the seriousness of the failure. Protective awards also sit separately from potential unfair dismissal, discrimination and payment claims.
Failing to notify the government through HR1 can be a criminal offence and lead to a fine.
Keep the advice, information issued, meeting notes and decision records together. Employment protection depends partly on being able to show what happened.
Frequently asked questions
What are the five stages of redundancy?
A practical five-stage structure is planning, identifying affected roles and choosing who will speak for affected employees, consultation, fair selection and consideration of alternatives, then dismissal arrangements and appeal.
These are organisational stages, not five statutory meetings. Collective and individual consultation can overlap, and provisional selection decisions must remain open to challenge.
How long does the whole process take?
Allow for preparation and elections, the applicable 30-day or 45-day minimum lead time, and employees’ notice arrangements. Complex proposals can take longer.
There isn’t one fixed completion date. Reaching day 30 or day 45 doesn’t excuse unfinished consultation.
How much redundancy notice must you give?
Statutory employer notice is normally one week after one month’s service until two years. It then becomes one week per completed year, capped at 12 weeks.
Give longer contractual notice where applicable. Consultation periods and notice periods are separate requirements.
What should employees ask during consultation?
Useful questions cover why their role is at risk, how the selection pool was chosen, what supports their scores and which vacancies are available. They can also ask how payments were calculated and how to challenge the decision.
Build the process before setting departure dates
Collective redundancy consultation starts with a joined-up view of your proposals. Count the dismissals, identify the establishment and leave room for employees to influence the outcome.
Our employment solution was created by award-winning lawyers, and we’re employment law specialists. We bring HR consultancy, software, learning and insurance-backed tribunal cover up to £250,000 together, subject to policy terms and following our advice.
Book an intro call to discuss keeping your restructure, advice and records together before the timetable becomes difficult to change.