From 6 April 2026, the maximum protective award for failure to collectively consult in redundancy situations will increase significantly:
- Previously: up to 90 days’ pay per employee
- New limit: up to 180 days’ pay per employee
Whilst this is the maximum award and tribunals still apply the “just and equitable” test, this doubling of the potential award substantially increases the financial risk for employers who fail to meet their obligations to collectively consult.
Collective consultation is a key legal requirement in redundancy procedures where 20 or more redundancies are proposed. It is designed to ensure that employers engage meaningfully with employees before making large-scale redundancies.
The cost of failing to collectively consult is about to get a whole lot more expensive when the protective awards double on 6 April!
What is collective consultation?
Collective consultation is the process of discussing redundancy proposals with employee representatives—either a recognised trade union or elected employee representatives. Its purpose is to explore ways to avoid redundancies, reduce the numbers involved, and mitigate the impact on affected employees.
It is not simply a formality; employers must genuinely consider feedback and attempt to reach agreement, even if agreement is not ultimately achieved.
When is collective consultation required?
Under the Trade Union and Labour Relations (Consolidation) Act 1992, collective consultation is legally required where an employer proposes:
- 20 or more redundancies
- within a 90-day period
- at a single establishment
This includes voluntary redundancies and situations where employees may be redeployed.
Even where fewer than 20 redundancies are proposed, consultation is still required to reduce legal risk and improve fairness. However, the collective consultation requirements do not apply below this threshold.
When should consultation begin?
Consultation must begin before any final decisions are made and in good time to allow meaningful discussion. Employers must start collective consultations at least:
- 30 days before the first dismissal where 20–99 redundancies are proposed
- 45 days before where 100+ redundancies are proposed
Importantly, employers cannot issue redundancy notices until consultation has concluded.
How is collective consultation carried out?
Employers must consult with appropriate representatives and provide key written information, including:
- reasons for the redundancies
- numbers and roles affected
- selection criteria methods
- timelines and redundancy pay calculations
The process should involve:
- open and honest dialogue
- regular meetings
- genuine consideration of employee proposals
- exploration of alternatives to redundancy
Employers must also ensure fair election of employee representatives where no trade union exists.
What is the purpose and practical value of consultation?
Effective consultation can:
- reduce the number of redundancies
- identify alternative roles or restructuring options
- improve employee trust and transparency
- minimise the risk of legal claims
It is both a legal obligation and a practical tool for managing organisational change.
What are the risks of failing to consult?
Failure to carry out proper collective consultation can have serious legal and financial consequences:
- Employees may bring claims to an employment tribunal
- Employers can be ordered to pay a protective award to affected employees
- Tribunals may penalise employers who attempt to avoid consultation
- Tribunals may find that staggered redundancies still trigger the duty to collectively consult if, viewed objectively, 20 or more dismissals were proposed
Collective consultation is a fundamental part of fair and lawful redundancy processes where 20+ employees are at risk of dismissal — there is no short cut. Employers must engage early, consult meaningfully, and follow statutory requirements where large-scale redundancies are proposed. Failure to do so exposes organisations to tribunal claims, reputational damage, and, following recent changes, significantly higher financial penalties.
How View HR can help
If you need support, reach out to us for:
- Managing redundancy consultations training
- Employee representative training
- Support running collective consultation processes
- Defending employment tribunal claims
Get in touch: https://viewhr.co.uk/contact-us/
