Centralise how you track redundancies as small numbers of dismissals across sites and workplaces may in future trigger statutory consultation processes and mistakes will be costlier

What is the current situation?

If an employer is planning 20 or more redundancies at one establishment within a 90-day period, they must consult with representatives of the affected employees.

This applies to ‘redundancies’ in the usual sense, and also where dismissals are used to change terms and conditions. (You can read more about changes to fire and rehire here.)

Under the current rules, ‘establishment’ generally means one workplace or site. 

Consultation must begin ‘in good time’ and at least 30 days before the first dismissal is proposed to take place. This rises to a minimum of 45 days if the proposal is to dismiss 100 or more employees.

Failure to undertake proper collective consultation may result in ‘protective awards’ against employers of up to 90 days’ pay per employee.

So what’s changing and when?

The Employment Rights Act will change the threshold that triggers the need for collective redundancy consultation.

It is expected that from 2027, a collective redundancy consultation will be required where either:

• The employer proposes 20 or more redundancies at one establishment (which is the current threshold), or
• The employer proposes a number of redundancies across the employer’s organisation as a whole, regardless of where they occur. This new number will be defined in regulations and could be between 20 and 100, or may involve a percentage test.

These changes mean that statutory collective consultation could be triggered by small numbers of unconnected redundancies across different sites and workplaces if they happen within a 90-day period. However, employers will not need to consult all of the employee representatives together or try to reach the same agreement with all of them.

The longer consultation period that applies when 100 or more redundancies are proposed could also be triggered more often when redundancies across different sites and workplaces are counted together.

It is expected that the Government will consult on the collective redundancy organisation-wide threshold number in early 2026, with a view to changes coming into effect in 2027.

Following a Government consultation  in 2024 on strengthening remedies against abuse of rules on collective redundancy and fire and rehire, the maximum award against employers for failing to collectively consult on redundancies will increase from 90 to 180 days’ pay per employee – significantly increasing the cost of failure to comply with the rules. This is expected to come into force in April 2026. 

It is possible that the Government may also in future consult on whether to double the minimum consultation period from 45 to 90 days when an employer is proposing to dismiss 100 or more employees.

What you need to do

The timing of some of these actions will depend on when the detail of the new laws is finalised and when the changes come into force. However, you can start to plan now:  

• Create centralised systems to track proposed redundancies across sites and workplaces. Remember you need to use the broad definition of a redundancy set out above.
   
• Strengthen relationships with employee representatives. Review your relationship with trade unions and other employee representatives and look for opportunities to build trust and improve communication.
   
• If you do not have a recognised union or standing body of employee representatives, consider setting up a standing body of employee representatives to reduce the need for repeated employee representative elections.
   
• Refresh manager training on how to run a statutory collective redundancy consultation, to ensure managers have the necessary skills and knowledge for when the stakes become higher and are better equipped to work successfully with unions and employee representatives.
   
• Prepare for more, and longer, collective consultations. Consider what can be done to further improve employee engagement to help consultations to go smoothly.

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.