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 on how many employees trigger collective redundancy rules in England and Wales, explaining statutory thresholds, consultation duties, employee rights, selection criteria, and tribunal considerations.
In employment law in England and Wales, collective redundancy occurs when a business proposes to dismiss a significant number of employees within a limited timeframe. The law establishes specific thresholds that trigger collective consultation obligations, ensuring employees and their representatives are informed, consulted, and provided the opportunity to influence the process. Understanding these thresholds is crucial for employers to comply with legal duties and for employees to know their rights.
Legal Definition of Collective Redundancy
Collective redundancy is regulated under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA), Sections 188–190, alongside provisions in the Employment Rights Act 1996 and guidance from Acas.
A redundancy is considered collective if an employer proposes to dismiss employees at one establishment over a 90-day period and the number meets or exceeds the statutory thresholds.
Employee Thresholds Triggering Collective Consultation
The thresholds are based on the number of employees proposed for redundancy at a single establishment within 90 days:
- 20 to 99 employees – employers must engage in collective consultation at least 30 days before the first dismissal;
- 100 or more employees – employers must engage in collective consultation at least 45 days before the first dismissal.
Key Points
- The 90-day period is cumulative. Redundancies that occur sporadically but total the threshold within 90 days still trigger collective consultation duties.
- A “single establishment” refers to a distinct location or operational unit, not the entire company if multiple sites are affected.
Consultation Duties Under Collective Redundancy Rules
Once the threshold is met, employers must consult with employee representatives or recognised trade unions. Duties include:
- Providing written information about the proposed redundancies, including numbers, roles, reasons, and timelines;
- Discussing ways to avoid or reduce redundancies, such as redeployment, flexible working, or retraining;
- Considering measures to mitigate the impact, including voluntary redundancy schemes;
- Engaging in meaningful discussion and considering proposals submitted by representatives.
Selection for Redundancy
Employers must apply fair, objective, and non-discriminatory criteria when selecting employees, including:
- Skills, experience, and qualifications;
- Performance or appraisal history;
- Attendance records;
- Length of service.
Protected characteristics such as age, sex, disability, religion, or union membership must not influence selection.
Consequences of Failing to Meet Thresholds
Failing to initiate consultation when the statutory employee threshold is met can result in:
- Protective awards, where tribunals may award up to 90 days' pay per affected employee;
- Unfair dismissal claims, particularly if selection criteria or procedural fairness is disputed;
- Financial penalties, legal costs, and reputational damage.
Practical Considerations for Employers
- Track proposed redundancies carefully to identify when thresholds are crossed;
- Begin consultation early to comply with statutory timeframes;
- Engage employee representatives and document discussions;
- Explore alternatives and mitigation measures seriously;
- Ensure fair and transparent selection criteria.
Employee Rights
Employees affected by collective redundancy are entitled to:
- Be represented by trade unions or elected representatives;
- Participate in consultation discussions;
- Receive written information about the proposed redundancies;
- Be considered for alternative roles within the organisation;
- Appeal dismissal decisions;
- Seek tribunal claims for protective awards or unfair dismissal if consultation obligations are not met.
Key Takeaways
Collective redundancy rules in England and Wales are triggered when 20 or more employees at a single establishment are proposed for dismissal within a 90-day period. Employers must engage in meaningful consultation with employee representatives, provide detailed information, consider alternatives, and apply fair selection criteria. Compliance protects employee rights, reduces the risk of tribunal claims, and ensures lawful and transparent redundancies.
