What is the current situation?

Where an employer is proposing to make 20 or more redundancies at one establishment within a rolling 90-day period, it must collectively consult with representatives of the affected employees.

This obligation applies to redundancies in the traditional sense, as well as situations where dismissals are used as a mechanism to impose changes to terms and conditions. (Bhayani Law advises separately on dismissal and re-engagement practices.)

Under the current legal framework, an “establishment” will generally mean a single workplace or site.

Collective consultation must begin in good time, and in any event at least 30 days before the first dismissal is proposed to take effect. This minimum period increases to 45 days where the employer proposes to dismiss 100 or more employees.

A failure to comply properly with collective consultation requirements can result in protective awards of up to 90 days’ gross pay per affected employee.

So what’s changing and when?

The Employment Rights Act will alter the threshold that triggers collective redundancy consultation.

It is anticipated that, from 2027, collective consultation will be required where either:

• the employer proposes 20 or more redundancies at one establishment (as is currently the case); or

• the employer proposes a specified number of redundancies across its organisation as a whole, regardless of location.

The organisation-wide threshold will be set out in regulations and may be a fixed number (potentially between 20 and 100) or based on a percentage test.

As a result, collective consultation could be triggered by relatively small numbers of unrelated redundancies across different sites or workplaces, provided they occur within the same rolling 90-day period. Employers will not, however, be required to consult all employee representatives together or to reach identical outcomes across different groups.

Counting redundancies across multiple sites may also mean that the longer 45-day minimum consultation period is triggered more frequently.

In addition, the maximum protective award for failure to comply with collective consultation obligations will increase from 90 to 180 days’ pay per employee, substantially increasing the financial risk of non-compliance. This change is expected to take effect in April 2026.

The Government is also expected to consult on whether the minimum consultation period for proposals involving 100 or more redundancies should increase from 45 to 90 days.

What you need to do

While the precise timing of these changes will depend on when the final regulations are published, employers can begin preparing now:

• Put centralised systems in place to track proposed redundancies across all sites and workplaces, applying the broad statutory definition of redundancy.

• Strengthen relationships with trade unions and other employee representatives, focusing on trust, transparency and effective communication.

• Where no recognised union or standing representative body exists, consider establishing a standing employee representative forum to avoid repeated election processes.

• Refresh manager training on running statutory collective redundancy consultations, ensuring managers understand the legal requirements and are equipped to engage constructively with representatives.

• Plan for more frequent and longer consultations, and consider steps to improve employee engagement to support smoother consultation processes.

How Bhayani Law can help you

Bhayani Law supports employers at every stage of the redundancy and collective consultation process. We can:

• Assess whether collective consultation is triggered, including where redundancies are spread across multiple sites or workplaces

• Advise on planning and timing, helping you manage risk as thresholds and consultation periods change

• Support and guide collective consultation, including strategy, documentation and communications with employee representatives and trade unions

• Train managers on running compliant and effective collective consultations

• Review redundancy proposals to minimise exposure to protective awards and unfair dismissal claims

• Provide ongoing HR and employment law support to help you prepare for longer and more complex consultation exercises

Our practical, commercial advice helps employers remain compliant while managing change with confidence and clarity.

Already getting support from Bhayani Law?

You will receive regular updates on key legal changes so you can stay compliant and well-prepared.

If you need advice, our expert team can support you in assessing whether collective consultation rules are triggered and how to conduct the process effectively.

Our HR and legal team can also work alongside you on redundancy projects now or in future, managing everything from planning and compliance to employee relations, communications and outplacement support.

We also offer training for managers and employee representatives to ensure everyone understands their roles and responsibilities.

New to Bhayani Law?

You don’t have to face the changes alone. Whether you need quick input or ongoing support, we can help you however works best for your business.