This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
A detailed guide to collective redundancy in England and Wales, covering legal requirements, consultation with employee representatives, selection criteria, notice, redundancy pay, tribunal risks, and practical steps for employers and employees.
Collective redundancy occurs when a large number of employees are dismissed by an employer at a single establishment over a short period due to the roles no longer being required. In England and Wales, the law imposes specific duties on employers to consult with employees or their representatives to ensure the process is fair, transparent, and lawful. Understanding collective redundancy procedures is essential for employees, trade unions, and employers to navigate rights, obligations, and potential claims.
Legal Definition
The legal framework for collective redundancies is primarily governed by:
- Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA), Sections 188–190 – sets out obligations for collective consultation;
- Employment Rights Act 1996 – establishes redundancy and dismissal protections;
- Acas Code of Practice on Redundancy – provides guidance for both collective and individual consultations.
A redundancy is considered collective if an employer proposes to dismiss:
- 20–99 employees within 90 days at one establishment; or
- 100 or more employees within 90 days at one establishment.
When Collective Consultation Is Required
Notification and Consultation Periods
Employers must consult employee representatives or recognised trade unions before any dismissals. The statutory minimum consultation periods are:
- 20–99 redundancies – at least 30 days before the first dismissal;
- 100 or more redundancies – at least 45 days before the first dismissal.
Employer Duties
During collective consultation, employers must:
- Provide written information on the proposed redundancies, including numbers and roles affected, reasons, and timelines;
- Discuss ways to avoid or reduce redundancies, such as redeployment, retraining, or flexible working;
- Consider measures to mitigate the impact, including voluntary redundancy schemes or changes to working patterns;
- Engage meaningfully with employee representatives, responding to proposals and questions.
Employee Representatives
Employee representatives may include:
- Trade union representatives;
- Elected employee representatives if no union is recognised.
Representatives serve as the main conduit for consultation, ensuring employee interests are considered. Employers must provide sufficient time and resources to facilitate meaningful discussion.
Selection for Redundancy
Employers must apply fair, objective, and non-discriminatory criteria when selecting employees for redundancy. Criteria often include:
- Skills, experience, and qualifications;
- Performance or appraisal records;
- Attendance history;
- Length of service.
Discriminatory factors based on protected characteristics such as age, sex, disability, religion, or union membership are strictly prohibited.
Notice and Redundancy Pay
Employees dismissed in a collective redundancy are entitled to:
- Statutory or contractual notice based on service length;
- Statutory redundancy pay for those with at least two years' continuous service;
- Payment in lieu of notice if applicable;
- Accrued holiday pay.
Legal Consequences of Failing Consultation Duties
Failure to conduct proper collective consultation can result in:
- Protective awards – tribunals may award up to 90 days' pay per affected employee;
- Claims for unfair dismissal – especially where procedural failures or discriminatory practices occur;
- Reputational damage and legal costs.
Tribunals assess whether employers acted reasonably and meaningfully consulted with employees or their representatives.
Practical Steps for Employers
- Begin consultation early and maintain detailed documentation;
- Engage fully with employee representatives;
- Explore alternatives to dismissal, including redeployment or retraining;
- Apply fair selection criteria;
- Communicate clearly with employees throughout the process.
These measures reduce the likelihood of claims and demonstrate compliance with statutory duties.
Employee Rights During Collective Redundancy
Employees affected by collective redundancy have the right to:
- Be informed about the redundancy proposal;
- Be represented by trade unions or elected representatives;
- Participate in consultation discussions;
- Be considered for alternative roles within the organisation;
- Appeal dismissal decisions;
- Claim for unfair dismissal or protective awards if consultation obligations are not met.
Key Takeaways
Collective redundancy applies when an employer proposes to dismiss a large number of employees over a short period. Employers are legally required to engage in meaningful consultation with employee representatives or trade unions, provide written information, consider alternatives, and apply fair selection criteria. Proper compliance protects employees' rights, minimises tribunal claims, and ensures fair and lawful redundancies.
