Why this matters right now
The 2013 reduction of the 100+ consultation minimum from 90 days to 45 days remains the biggest post-recession change to UK collective redundancy law. In 2025-26 the Employment Rights Bill has proposed further reforms including reinstating the 90-day minimum in certain circumstances. As at August 2026 the reform has not been enacted. Below is the current framework - watch the Bill.
The threshold and timelines
| Redundancies proposed | Consultation must start before first dismissal |
|---|---|
| Fewer than 20 | Individual consultation only |
| 20-99 | At least 30 days |
| 100 or more | At least 45 days |
The clock runs from the date consultation formally begins, not from the announcement.
The HR1 form
Where collective consultation applies, the employer must file the HR1 form with the Redundancy Payments Service before consultation starts. HR1 notifies the government of the proposed redundancies and includes the same information given to representatives. Failure to file is a criminal offence.
What must be consulted on
Section 188 Trade Union and Labour Relations (Consolidation) Act 1992 requires consultation on:
- Ways to avoid the redundancies.
- Ways to reduce the numbers.
- Ways to mitigate the consequences.
The employer must provide written information including: reasons for the proposed redundancies, numbers and descriptions of affected employees, total employees at that establishment, selection criteria, dismissal procedure, and calculation of any non-statutory pay.
Employee representatives
Where a trade union is recognised for the affected employees, consultation is with union representatives. Where no union is recognised, employees must elect representatives. Employer duties:
- Facilitate the election.
- Ensure the number is sufficient to represent affected employees.
- Provide reasonable facilities (time, room, communications).
- Consider representations made during consultation.
Genuine consultation
Consultation must be genuine, not a rubber-stamp exercise. Case law (particularly King v Eaton) requires:
- Consultation begins when proposals are still capable of being changed.
- Employer provides adequate information for meaningful response.
- Employer allows adequate time for consideration.
- Employer conscientiously considers representations.
Protective awards for breach
Failure to consult properly attracts a protective award of up to 90 days gross pay per affected employee. Awarded by the employment tribunal. Very large in mass-redundancy cases - a 500-employee failure can produce £50m+ in protective awards.
Time limit: claims must be brought within 3 months of the last dismissal.
Interaction with individual consultation
Collective and individual consultation are separate cumulative duties. Both must be completed. Individual consultation covers the impact on each specific employee (selection scores, alternative roles, personal circumstances); collective consultation covers the scheme-wide questions (avoiding redundancies, mitigating consequences).
Fair procedure alongside consultation
Collective consultation does not remove the need for a fair procedure toward each individual. Individual selection, meetings, alternative role searches and appeal all apply as normal. See redundancy consultation process.
After consultation - practical planning
Where redundancy proceeds, employees receive statutory redundancy pay (2+ years service), notice pay, accrued holiday and any enhanced sums. Use the redundancy calculator for gross figure. For household budgeting and lump-sum management guidance, the sister site PennyWise Finance covers the practical after-redundancy money questions in depth.
Case example: protective award for defective consultation
A retail chain in 2023 announced 340 store-closure redundancies and rushed the 45-day consultation into a compressed 3-week window citing "commercial urgency". No meaningful consideration was given to avoiding the redundancies (only how to implement them). The tribunal made a protective award of 60 days per affected employee - £4.2m across the cohort. The lesson: consultation is not a rubber stamp. Rushing it is expensive.
Useful calculators
- Redundancy pay calculator
- Redundancy tax estimator
- Redundancy runway calculator
- PILON calculator
- Final pay estimator
Related guides
- Redundancy selection criteria
- Redundancy consultation process
- Redundancy consultation timeline
- Redundancy consultation period
- Redundancy rights UK
- TUPE transfer rules
Authority pages
Frequently asked questions
- What is collective redundancy?
- A redundancy exercise where 20 or more employees are proposed to be dismissed at one establishment within a 90-day period. Attracts special consultation duties beyond individual consultation.
- What are the consultation timelines?
- 20-99 redundancies: consultation must start at least 30 days before the first dismissal. 100+ redundancies: at least 45 days. Fewer than 20: individual consultation only, no collective duty.
- What is the HR1 form?
- The statutory notification the employer must file with the Redundancy Payments Service before collective consultation starts. Notifies the government of proposed redundancies. Failure to file is a criminal offence.
- What is a protective award?
- Up to 90 days gross pay per affected employee, awarded by the tribunal where the employer failed to consult properly. Very large in mass cases.
- Do individual consultation rules still apply?
- Yes. Collective and individual consultation are separate cumulative duties. Both must be completed. Individual selection, meetings, alternative roles and appeals all apply.
Sources and further reading
- Trade Union and Labour Relations (Consolidation) Act 1992, sections 188-198 — Collective redundancy consultation.
- GOV.UK: Making staff redundant - collective — Government guidance.
- ACAS: Collective consultation — ACAS guidance.
- ACAS — Free, impartial UK employment advice.
- Employment Rights Act 1996, section 86 — Statutory minimum notice.
General information about UK employment law, not legal advice. For your situation, contact ACAS or an employment-law solicitor.