Redundancy consultation process

Two types of consultation

• Individual consultation. Applies to every redundancy. The employer must consult with each affected employee individually before deciding to dismiss.
• Collective consultation. Applies when 20 or more redundancies are proposed at one establishment within a 90-day period. Consultation is with elected employee representatives or a recognised trade union, in addition to individual consultation.

The two duties are separate and cumulative. Employers proposing 20+ redundancies must complete collective consultation as well as individual consultation. Failure in either can produce claims.

Trigger points and timing

Collective consultation trigger:

• 20 to 99 redundancies proposed: consultation must start at least 30 days before the first dismissal takes effect.
• 100 or more redundancies proposed: consultation must start at least 45 days before the first dismissal takes effect (reduced from 90 days in 2013).

Individual consultation must start early enough to allow meaningful discussion before the decision to dismiss. There is no fixed statutory minimum; ACAS guidance suggests a period proportionate to the seniority and complexity of the role - typically 2-4 weeks minimum for junior roles, longer for senior roles.

The typical consultation sequence

1. Announcement / at-risk letter. Employer writes to affected employees explaining that their roles are at risk of redundancy, why, timescales and the consultation process.
2. Section 188 letter and HR1 form. For collective consultation only. Section 188 TULRCA 1992 requires the employer to write to representatives with prescribed information; HR1 form filed with the Redundancy Payments Service.
3. Election of representatives. Where there is no recognised union, the employer facilitates the election of employee representatives for collective consultation.
4. Consultation meetings. Individual and collective meetings with agenda, minutes and follow-up. Typical: 2-4 individual meetings; 3-6 collective meetings across the consultation period.
5. Selection stage. Employer applies published selection criteria (see below) and scores affected employees.
6. Provisional selection meeting. Employer notifies each selected employee provisionally and gives them a chance to challenge scores and criteria.
7. Alternative role offers. Employer identifies any suitable alternative vacancies and offers them.
8. Confirmation and notice. Employer confirms selection, issues notice of dismissal with contractual notice period.
9. Appeal. Employee can appeal the decision internally; the employer holds a fair appeal hearing.
10. Effective date of termination. Employment ends. Statutory redundancy pay and outstanding wages/holiday paid.

Individual consultation meetings

Each affected employee is entitled to individual consultation meetings. Typical structure:

• Meeting 1 - explaining the redundancy situation, the pool, the criteria and the timescales. Answering the employee's initial questions.
• Meeting 2 - discussing alternatives to redundancy (redeployment, voluntary redundancy, reduced hours). Considering the employee's suggestions.
• Meeting 3 - selection score discussion, alternative role discussion, response to any suggestions made.
• Meeting 4 (if needed) - final decision meeting, notice.

Employees are entitled to be accompanied by a colleague or trade union representative at consultation meetings under section 10 Employment Relations Act 1999.

Selection criteria

Selection must be objective, non-discriminatory and applied consistently. Common criteria:

• Skills, qualifications and experience (audit against required skill matrix).
• Performance (recent appraisal ratings, documented KPIs).
• Attendance (excluding disability-related, pregnancy-related and family leave absence).
• Disciplinary record (recent, live warnings only).
• Length of service (usually a minor factor to avoid indirect age discrimination).

Criteria that produce a disproportionate impact on employees with a protected characteristic (age, sex, race, disability, religion, sexual orientation, pregnancy) can be indirect discrimination unless objectively justified. Employers should test criteria for disproportionate impact before applying them.

Alternative role offers

Employers must search for suitable alternative vacancies within the business (and within group companies where practicable) and offer them to affected employees before dismissal. "Suitable" is a fact-and-degree test:

• Comparable duties, seniority, pay and location.
• Reasonable for the employee to accept given personal circumstances.
• Statutory 4-week trial period applies for accepted alternatives (Section 138 ERA).

Refusal of a suitable alternative without a reasonable ground forfeits the right to statutory redundancy pay. Employees on maternity leave, adoption leave or shared parental leave have priority right to any suitable alternative under the Protection from Redundancy (Pregnancy and Family Leave) Act 2023.

Right to written statement of reasons

Employees selected for redundancy are entitled to a written statement of the reasons for dismissal on request (section 92 ERA), giving the reasons and the calculation of the redundancy payment. Employees with 2 years service can require this within 14 days of the request.

Appeal rights and remedies

Internal appeal is a normal step. If the appeal fails and the employee wishes to challenge externally, options are:

• Unfair dismissal claim at employment tribunal if 2 years continuous service - within 3 months less one day of the effective date of termination.
• Automatic unfair dismissal claim if the reason for selection was discriminatory (no qualifying period) or if the collective consultation duty was breached.
• Protective award claim if collective consultation was defective - up to 90 days gross pay per affected employee, on top of any other award.
• Discrimination claim if selection or process was discriminatory - Equality Act claim within 3 months.

Defective consultation is one of the most common redundancy claim grounds. See employment tribunal UK, unfair dismissal UK and unfair dismissal compensation.

Useful calculators

• Redundancy pay calculator
• Redundancy runway calculator
• Redundancy tax estimator
• PILON calculator
• Final pay estimator

Related guides

• Redundancy consultation period
• Redundancy rights UK
• Unfair dismissal UK
• Employment tribunal UK
• TUPE transfer rules

Authority pages

• Employment rights hub
• Notice period rights UK
• Redundancy rights UK
• Employment tribunal UK

Frequently asked questions

When does collective redundancy consultation apply?

When 20 or more redundancies are proposed at one establishment within a 90-day period. Collective consultation with employee representatives or a recognised trade union sits alongside individual consultation and must start at least 30 days before the first dismissal (45 days for 100+).

How long should individual redundancy consultation last?

No fixed statutory minimum, but must be genuinely meaningful - typically 2-4 weeks for junior roles and longer for senior roles. Enough time for the employee to raise alternatives, challenge selection criteria and consider redeployment options. Rushed consultation is a common tribunal ground.

Can I bring a companion to a redundancy meeting?

Yes. Employees have a statutory right under section 10 Employment Relations Act 1999 to be accompanied by a colleague or trade union representative at consultation meetings. The companion can address the meeting and take notes.

What happens if I refuse a suitable alternative role?

You lose the right to statutory redundancy pay. The alternative must be genuinely suitable (comparable duties, seniority, pay, location) and the refusal must be unreasonable. There is a statutory 4-week trial period on any accepted alternative under section 138 ERA.

What is a protective award?

Up to 90 days gross pay per affected employee, awarded by the employment tribunal where the employer failed to consult properly on collective redundancies. The award is in addition to redundancy pay and any unfair dismissal award, and can be very large in mass redundancy cases.

General information about UK employment law, not legal advice. For your situation, contact ACAS or an employment-law solicitor.