UK redundancy consultation is the legal obligation on employers proposing to make redundant employees to consult with the affected workers and, where the numbers are high enough, with recognised trade unions or elected employee representatives. The consultation periods are fixed by statute: 30 days where 20–99 redundancies are proposed, and 45 days where 100 or more are proposed. Individual consultation must occur regardless of the number of redundancies. Failure to consult collectively is a breach of s.188 of the Trade Union and Labour Relations (Consolidation) Act 1992, which exposes the employer to a protective award of up to 90 days’ gross pay per affected employee.

This guide covers the collective consultation triggers, individual consultation requirements, redundancy selection, and the payment framework.

Key takeaways

  • Where an employer proposes to dismiss 20 or more employees as redundant within a 90-day period, collective consultation is compulsory.
  • For 20–99 redundancies, the consultation period is at least 30 days before the first dismissal takes effect.
  • For 100 or more redundancies, the consultation period is at least 45 days.
  • Individual consultation is required for every redundancy, regardless of the numbers.
  • Each affected employee is entitled to a statutory redundancy payment based on age, service, and weekly pay.
  • Failure to consult collectively can result in a protective award of up to 90 days’ gross pay per employee — one of the highest tribunal penalties in UK employment law.

When collective consultation is triggered

Under s.188 TULRCA 1992, the duty to consult collectively arises where the employer proposes to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less.

The trigger is the proposal, not the decision. Once the employer is contemplating redundancies and the numbers could reach 20 or more, the clock starts. Waiting until the final decision is made — or until the selection pool is defined — is too late.

What counts as an establishment

The employer must count redundancies at one establishment. If you have offices in London and Manchester and propose 15 redundancies at each, you do not meet the threshold at either site — but if you propose 25 at the London office, collective consultation is required for that establishment.

Meaning of “proposes”

The tribunal has interpreted “proposes” broadly. It does not require a final decision — it is enough that the employer has a “fixed idea” or “clear proposal” that dismissals may occur. A vague intention to “review headcount” is not enough, but a proposal to restructure that will result in redundancies is.

Collective consultation requirements

20–99 redundancies: 30-day period

The employer must begin collective consultation at least 30 days before the first dismissal takes effect. The consultation must include:

  • The reasons for the proposed redundancies.
  • The numbers and descriptions of employees proposed for dismissal.
  • The proposed method of selection.
  • The proposed method of carrying out the dismissals, including the period over which they are to be made.

100 or more redundancies: 45-day period

Where 100 or more redundancies are proposed at one establishment within 90 days, the consultation period increases to 45 days before the first dismissal.

Who the employer must consult

  • Recognised trade union — where a union is recognised, the employer must consult with the union representatives.
  • Employee representatives — where there is no recognised union, the employer must arrange for employee representatives to be elected for the purpose of the consultation.

The representatives must be given access to relevant information and the time and facilities to carry out their role.

Individual consultation

Regardless of the collective consultation requirements, each employee who is at risk of redundancy must be individually consulted. The minimum elements are:

  1. Notification — the employee is told they are at risk of redundancy.
  2. Selection criteria — the employee is told the criteria by which they will be scored.
  3. Scoring — the employee is scored against the criteria and given the result.
  4. Alternative employment — the employer must make reasonable efforts to find suitable alternative roles.
  5. Trial period — if an alternative role is offered, the employee is entitled to a statutory trial period.

Individual consultation should typically involve at least two meetings — one to notify and one to discuss the outcome. A single meeting is rarely sufficient.

Statutory redundancy payment

Every employee with two or more years’ continuous service is entitled to a statutory redundancy payment under s.135 ERA 1996. The calculation is:

Age Entitlement
Under 22 0.5 week’s pay for each complete year of service
22–40 1 week’s pay for each complete year of service
41 and over 1.5 weeks’ pay for each complete year of service

The maximum weekly pay for redundancy calculation purposes is £700 (2026 figure) or the actual weekly pay if lower. The maximum statutory redundancy payment is £21,000.

Worked example: A 45-year-old employee with 8 years’ service and a weekly pay of £600.

  • Years aged 41–45: 5 years × 1.5 weeks = 7.5 weeks
  • Years aged 38–40: 3 years × 1 week = 3 weeks
  • Total: 10.5 weeks × £600 = £6,300

Suitable alternative employment

The employer has a duty to make reasonable efforts to identify and offer suitable alternative employment. A role is suitable if:

  • The terms are not substantially less favourable.
  • The employee is capable of doing the work.
  • The work is within reasonable commuting distance.

If the employee unreasonably refuses a suitable alternative, they lose the statutory redundancy payment. If the employer fails to offer a suitable alternative and the employee is dismissed, the dismissal may be unfair.

Common pitfalls

1. Starting consultation too late

The 30-day or 45-day period runs from the start of consultation, not from the announcement. Starting individual consultation and then beginning collective consultation two weeks later does not comply.

2. Using redundancy as a disguise for unfair dismissal

If the true reason for dismissal is performance or conduct, but the employer uses redundancy to avoid a capability process, the tribunal will look at the substance. A redundancy process that predetermines the outcome is not a genuine redundancy.

3. Failing to consult individually

Even where collective consultation is not triggered (fewer than 20 redundancies), individual consultation is always required. An employer who makes a redundant employee’s role redundant without any consultation process has an unfair dismissal claim.

4. Ignoring the duty to consider alternatives

The duty to offer suitable alternative employment is a separate obligation. An employer who consults properly but does not search for alternative roles has still failed in its obligations.

Putting it into practice

Five steps to build a compliant redundancy process:

  1. Track redundancy proposals — once the numbers could reach 20 within 90 days at one establishment, trigger the collective consultation process immediately.
  2. Elect or identify representatives — if there is no recognised union, arrange for employee representatives to be elected before the consultation period begins.
  3. Prepare the disclosure document — the reasons, numbers, descriptions, selection criteria, and proposed method must be in writing before the first collective consultation meeting.
  4. Document individual consultation — each meeting should have a written record, and the employee should receive a copy.
  5. Record the alternative employment search — document every role considered, why it was or was not suitable, and what the outcome was.
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Sources

This article is general information, not legal advice. Redundancy law is complex and fact-specific — consult ACAS or an employment solicitor for guidance on specific situations.