Collective Redundancy Consultation

Section 188 of TULRCA 1992 requires collective consultation when an employer proposes to dismiss as redundant 20 or more employees within a period of 90 days or less at one establishment. Key points:

• "Establishment" means the distinct business unit where the employee works — not necessarily the entire business. In large organisations with multiple sites, each site may count as a separate establishment for these purposes.
• The 20-employee threshold applies to the number being made redundant, not the total workforce.
• All employees at risk of dismissal for redundancy count towards the threshold — including those on fixed-term contracts, part-time workers, and those on maternity or sick leave.
• Voluntary redundancies count towards the 20-employee threshold.
• The obligations apply even if fewer than 20 redundancies ultimately take place — it is the proposal that triggers the duty.

Individual redundancy consultation obligations (the requirement to consult personally with employees at risk) apply regardless of numbers and must also be followed in parallel. Collective consultation does not replace individual consultation.

The minimum consultation periods under section 188 TULRCA 1992 are:

• 20–99 proposed redundancies: At least 30 days of consultation before the first dismissal takes effect.
• 100 or more proposed redundancies: At least 45 days of consultation before the first dismissal takes effect.

These are minimum periods — consultation should last as long as is necessary to be meaningful. The employer must begin consultation in good time: if the minimum period is 45 days, consultation must start at least 45 days before the first proposed dismissal date.

Before or at the start of consultation, the employer must provide written information to employee representatives covering:

• The reasons for the proposed redundancies
• The numbers and descriptions of employees proposed for redundancy
• The total number of employees of each description at the establishment
• The proposed selection criteria
• The procedure for carrying out dismissals and the period over which dismissals will take place
• The method of calculating redundancy payments (beyond statutory minimum if enhanced payments are offered)

Consultation must be genuine and meaningful — with a view to reaching agreement on ways to avoid or reduce redundancies, or mitigate the consequences. Employers cannot simply go through the motions while having already decided the outcome.

In addition to consulting with employee representatives, employers must notify the Secretary of State (in practice, the Redundancy Payments Service at the Department for Business and Trade) using Form HR1 before collective consultations begin.

The notification must be made at least:

• 30 days before the first dismissal takes effect (for 20–99 redundancies)
• 45 days before the first dismissal takes effect (for 100 or more redundancies)

The HR1 form requires information about the employer, the establishment, the number of redundancies proposed, the reasons, and the proposed consultation period. A copy of the HR1 must be given to employee representatives at the same time.

Failure to submit the HR1 is a criminal offence. The employer (or, in some cases, company directors) can face an unlimited fine. The HR1 can be submitted online at GOV.UK. This notification requirement exists partly to allow the government to plan support for workers who may need assistance finding new employment.

If an employer fails to comply with the collective consultation requirements — for example, by failing to consult at all, consulting for less than the minimum period, or failing to provide the required information — employees can bring a complaint to the Employment Tribunal. The Tribunal can award a protective award of up to 90 days' pay per affected employee. This is paid at a week's pay (subject to the statutory cap, currently £643/week in 2024–25) multiplied by the number of weeks the Tribunal awards.

Employee representatives play a central role in collective consultation. If there is a recognised trade union at the establishment, consultation must take place with union representatives. If there is no recognised union, the employer must invite affected employees to elect employee representatives:

• The employer must give employees a reasonable opportunity to elect representatives
• There must be a sufficient number of representatives to represent all affected employees
• Representatives must be allowed reasonable paid time off to carry out their functions
• Representatives are protected from detriment or dismissal for carrying out their functions

If an employer fails to invite elections for employee representatives without a valid reason, this itself constitutes a failure to comply with section 188. Individual employees whose representatives were not properly constituted may still bring protective award claims.