Definition
A legal obligation on employers proposing to make 20 or more employees redundant at one establishment within a 90-day period. The employer must consult with appropriate employee representatives and notify the Redundancy Payments Service (RPS).
UK Context
Required under the Trade Union and Labour Relations (Consolidation) Act 1992. Consultation must begin at least 30 days before the first dismissal for 20-99 redundancies, or 45 days for 100 or more. The employer must file a form HR1 with the RPS. Failure to comply can result in a protective award of up to 90 days' pay per affected employee.
Best Practices
- Start consultation as early as possible and always within the statutory timeframes
- Consult about ways to avoid redundancies, reduce numbers, and mitigate consequences, not just the selection criteria
- Ensure employee representatives are given adequate time and facilities to carry out their role effectively
Frequently Asked Questions
Who should be consulted in a collective redundancy?
If there is a recognised trade union, consultation must be with the union. Otherwise, the employer must arrange the election of employee representatives. Employers must also consult individually with each affected employee.
What happens if an employer fails to consult properly?
An employment tribunal can make a protective award of up to 90 days' gross pay per affected employee. This is a penalty for the employer's failure to consult, separate from any compensation for unfair dismissal.