Employers should centralise how they track redundancies, as smaller numbers of dismissals spread across different locations could soon trigger statutory consultation requirements, and the cost of mistakes will rise significantly.

What is the current situation?

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

This applies both to traditional redundancies and to dismissals used to change terms and conditions.

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

Consultation must start in good time and at least 30 days before the first dismissal is proposed. This increases to a minimum of 45 days if the proposal involves dismissing 100 or more employees.

Failing to carry out proper collective consultation can result in protective awards of up to 90 days’ pay per employee.

What’s changing and when?

The Employment Rights Bill will expand the threshold for triggering collective redundancy consultation.

From 2027, consultation will be required if either:

• The employer proposes 20 or more redundancies at one establishment (as under current rules), or
• The employer proposes redundancies across the organisation as a whole, regardless of location. The new numerical or percentage threshold will be set in regulations and may range from 20 to 100 redundancies, or be based on a percentage of the workforce.

These reforms mean that relatively small numbers of unrelated redundancies in different locations could trigger statutory consultation if they occur within a rolling 90-day period. Employers will not, however, need to consult all representatives together or reach a single agreement.

The longer consultation period for 100 or more redundancies could also apply more frequently when counting across multiple sites.

From April 2026, the maximum protective award will increase from 90 to 180 days’ pay per employee.

The Government is also expected to consult in Winter 2025 and early 2026 on whether to double the minimum consultation period from 45 to 90 days where 100 or more redundancies are proposed.

What you need to do now

• Implement centralised systems to monitor proposed redundancies across all sites and departments.
• Develop and maintain strong relationships with trade unions and employee representatives to improve trust and communication.
• If you do not have a recognised union or permanent body of representatives, consider creating one to avoid repeated elections.
• Provide updated manager training on running a lawful and effective collective consultation process.

How Bhayani Law can help you

Whether you are already working with us or exploring your options for the first time, we can guide you through the Employment Rights Bill changes and help protect your business from costly mistakes.

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.