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 comprehensive guide to consultation duties in redundancy situations in England and Wales, covering individual and collective consultation, legal requirements, employee rights, fair practices, tribunal considerations, and practical guidance for employers.
In England and Wales, consultation is a key legal requirement in redundancy situations. It ensures employees are informed, involved, and given the opportunity to influence decisions before dismissals occur. Employers who fail to consult properly risk claims for unfair dismissal or protective awards in an employment tribunal. Consultation duties vary depending on the number of redundancies and whether collective or individual consultation applies. This article explains the legal framework, practical steps, employee rights, and tribunal considerations.
Legal Framework
Consultation duties in redundancy are primarily governed by:
- Employment Rights Act 1996 – provides the statutory basis for fair redundancy and dismissal;
- Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) – sets out collective consultation obligations for larger-scale redundancies;
- Acas Code of Practice on Redundancy – offers guidance on best practice for both individual and collective consultations.
Tribunals consider whether the consultation was genuine, timely, and meaningful. Failure to meet these duties can result in claims and financial penalties.
Individual Consultation Duties
When It Applies
Individual consultation is required whenever one or more employees are at risk of redundancy, irrespective of the total number. The purpose is to:
- Explain why redundancies are necessary;
- Discuss the selection criteria;
- Explore alternatives to redundancy, including redeployment;
- Consider employee feedback before final decisions.
Process Requirements
- Notification – employees should be informed early that their role is at risk.
- Explanation – provide clear reasons for the proposed redundancy.
- Discussion – meet individually to consider alternative solutions or adjustments.
- Documentation – maintain records of consultations, employee questions, and employer responses.
Even for a single redundancy, tribunals expect that employers act reasonably and fairly throughout.
Collective Consultation Duties
When It Applies
Collective consultation is triggered when 20 or more employees are at risk at one establishment over a 90-day period. The employer must consult:
- Employee representatives, or
- Trade unions if recognised.
Minimum Consultation Periods
- 20–99 employees – at least 30 days before the first dismissal;
- 100 or more employees – at least 45 days before the first dismissal.
Key Consultation Duties
- Provide written information covering reasons for redundancies, numbers affected, and proposed selection criteria;
- Discuss ways to avoid or reduce redundancies;
- Explore alternative employment or working arrangements;
- Maintain transparent records and respond to employee input.
Fair Consultation Practices
Tribunals examine whether consultation was substantive and meaningful. Key indicators include:
- Adequate time to respond and propose alternatives;
- Clear communication of business reasons and selection criteria;
- Genuine consideration of employee suggestions;
- Consistent application of fair selection criteria.
Employers are encouraged to involve employees in discussions about redeployment, retraining, flexible work arrangements, or voluntary redundancy schemes.
Consequences of Failing Consultation Duties
Failure to comply with consultation duties can result in:
- Protective awards – compensation up to 90 days' pay per affected employee in collective redundancies;
- Unfair dismissal claims – particularly where procedural failures or discrimination are evident;
- Damage to employee relations and organisational reputation.
Tribunals do not automatically find redundancies unfair if consultation is slightly deficient, but serious or deliberate breaches carry financial and legal consequences.
Employee Rights During Consultation
Employees have the right to:
- Be informed promptly if their role is at risk;
- Receive full information about the redundancy proposal;
- Participate in discussions and propose alternatives;
- Be considered for suitable alternative roles;
- Appeal the redundancy decision if dissatisfied.
Practical Guidance for Employers
- Start consultation early and document every stage;
- Apply objective and fair selection criteria;
- Consider redeployment and alternatives seriously;
- Engage in collective consultation where applicable;
- Provide written records of discussions and decisions.
A well-managed consultation process reduces the risk of tribunal claims and ensures compliance with statutory duties.
Key Takeaways
Consultation is a legal obligation in redundancy situations in England and Wales. Individual consultation ensures each affected employee is informed and has the opportunity to contribute, while collective consultation applies to larger-scale redundancies. Proper consultation includes early notification, meaningful discussion, exploration of alternatives, and transparent documentation. Employers who follow these steps protect employee rights, reduce the risk of claims, and demonstrate procedural fairness.
