Definition
A situation in which an employer proposes to dismiss 20 or more employees at one establishment within a 90-day period for reasons of redundancy, triggering statutory obligations to consult with employee representatives.
UK Context
Collective redundancy consultation is governed by sections 188-198 of TULRCA 1992, implementing the EU Collective Redundancies Directive (which remains in UK law post-Brexit). The 30-day and 45-day minimum periods apply. Employers must also file an HR1 form with the Redundancy Payments Service. The protective award for non-compliance is up to 90 days' actual pay per employee.
Best Practices
- Begin consultation as early as possible, well before the statutory minimum period where practicable
- Consult with a genuine openness to alternatives, not with a predetermined outcome
- File the HR1 form with the Redundancy Payments Service promptly to avoid penalties
- Provide all the required written information to employee representatives at the start of consultation
- Keep detailed records of all consultation meetings, proposals, and responses
Frequently Asked Questions
When do collective redundancy rules apply?
The rules apply when an employer proposes to dismiss 20 or more employees at one establishment within a 90-day period for reasons of redundancy. The definition of establishment is the specific workplace or site, not the overall organisation, although this is subject to ongoing legal interpretation.
What is the penalty for not consulting?
An employment tribunal can make a protective award of up to 90 days' actual pay per affected employee. This is in addition to any individual unfair dismissal or redundancy claims. The award is punitive in nature and can amount to a very substantial sum where large numbers of employees are affected.
Can individual redundancy consultations run alongside collective consultation?
Yes, and in practice they often do. However, the individual consultation should not pre-empt or undermine the collective process. Employers should ensure that collective consultation on avoiding or reducing redundancies takes place before individual selection and consultation meetings conclude.