When do collective redundancy consultation obligations arise?

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Whenever an employer is proposing multiple redundancies, it is essential to consider whether collective consultation obligations are triggered. Under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA), the duty arises where 20 or more redundancies are proposed at one establishment within a 90-day period. This requires at least 30 days’ consultation (or 45 days where 100 or more redundancies are proposed).

Risks of non – compliance

The risks of getting this wrong are significant – and have increased. Since April 2026, the maximum protective award for failure to collectively consult has doubled to 180 days’ gross pay per affected employee, uncapped. For large-scale exercises, the financial exposure can be substantial.

A key point often overlooked is that “redundancy” is defined broadly. It includes most ‘no-fault’ dismissals, not just traditional redundancy situations. This means dismissals for “some other substantial reason” (SOSR) – for example, business reorganisations – may also count towards the threshold.

Other important considerations include:

  • Voluntary redundancies count towards the 20-employee threshold
  • Fixed-term contracts are excluded only where they expire naturally; early termination will count
  • The threshold is assessed per legal entity, not across a group
  • The concept of “establishment” remains key, meaning different sites are generally assessed separately

Assessing proposed dismissals

Employers should also focus on proposed dismissals, not those already completed. In Micro Focus v Mildenhall, the Employment Appeal Tribunal (EAT) confirmed that the 90-day test is forward-looking – capturing planned redundancies, not historic ones.

Future changes to redundancy thresholds

Looking ahead, the Employment Rights Act 2025 introduces a potential shift (likely from 2027), with proposals to add a new threshold based on total redundancies across a business, regardless of establishment. The government recently launched a consultation on this proposal, putting forward a preferred option of using a figure trigger only, with the trigger proposed to be between 250 and 1000 redundancies across a business. Employers should keep a close eye on developments in this area.

Here to help

Always assess collective consultation obligations early. Failure to comply can result in significant financial penalties, potential uplifts in compensation, and even criminal liability for failing to file an HR1 form. Our Employment team at Longmores advises employers on redundancy planning and collective consultation obligations,.

If you would like guidance on whether collective consultation applies to your proposed redundancies, or support managing the process, please contact Richard Gvero, Senior Partner and Head of Employment Law.

Please note, the contents of this article are provided for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.