Dealing with redundancies of more than 20 employees

Where an employer proposes to make 20 or more redundancies at one establishment within 90 days, additional collective consultation and notification requirements apply. These obligations sit alongside individual consultation requirements.

Collective redundancy consultation rules

Collective consultation is required where an employer proposes 20 or more redundancies at one establishment within a 90-day period. Consultation must begin while redundancies are still at the proposal stage, even if the final numbers or affected business areas are not yet settled.

Is there a genuine redundancy situation?

Employers should establish and document the business reasons for the proposed redundancies, including why the roles are no longer required.

Defining the ‘establishment’ from which you are making redundancies

The collective consultation threshold applies to redundancies at a single establishment. This is not necessarily a geographical site: it depends on the organisational unit to which employees are assigned.

For example, sales representatives working remotely or across different locations may belong to one sales establishment, depending on how the business is organised. Employers should assess this carefully before deciding whether collective consultation is required.

Identify affected employees and consider alternatives

Employers should identify the employees affected by the proposals, consider the appropriate redundancy pool and selection criteria, and explore suitable alternative roles where available. Special redundancy protections may apply to employees taking pregnancy-related or certain family-related leave.

Collective consultation covers representatives of affected employees, while individual consultation with employees at risk is also required.

Employers must consult the appropriate representatives of affected employees. These may be:

• Representatives of a recognised trade union, where applicable.
• Existing employee representatives with authority to represent employees on the proposals.
• Representatives elected specifically for the redundancy consultation.

Where a recognised trade union represents the affected employees in the relevant bargaining unit, consultation must take place through the appropriate union representatives. Otherwise, suitable employee representatives may need to be elected.

Consultation periods and notification

The minimum period before the first dismissal takes effect depends on the number of proposed redundancies at one establishment within 90 days:

• 20–99 employees: consultation must begin at least 30 days before the first dismissal takes effect.
• 100 or more employees: consultation must begin at least 45 days before the first dismissal takes effect.

Consultation must also begin in good time and be meaningful. Employers must separately notify the Secretary of State using form HR1 within the applicable statutory timeframe. Failure to comply can have significant consequences.

Provide appropriate communication facilities

Employers must provide representatives with appropriate facilities to carry out their role and communicate with affected employees.

For remote workforces, this may include telephone or video meetings and suitable communication arrangements. Employers should protect confidential discussions, consider data protection requirements and ensure that employees without access to digital technology can participate.

What happens next?

The aim of collective consultation is to seek agreement on ways to avoid redundancies, reduce their number and mitigate their consequences. If redundancies proceed, employers must also complete the appropriate individual consultation, selection and alternative-role processes.

Gannons can help employers navigate collective redundancy obligations, manage legal risks and develop practical, commercially focused solutions, including where timescales are urgent.