Large‑Scale Redundancies Explained

Large‑scale redundancies occur when an employer proposes to make numerous employees redundant within a short timeframe. In England and Wales, UK employment law sets specific rules and protections when redundancy affects 20 or more employees at a single establishment within a 90‑day period, often involving collective consultation obligations and statutory processes. This guide explains the legal framework, employee rights, employer duties, time limits, practical considerations and common questions relevant to large‑scale redundancies.

What Qualifies as a Large‑Scale Redundancy?

Under current law, redundancies are treated as collective or large‑scale when an employer proposes to dismiss 20 or more employees as redundant at one establishment within a 90‑day period. An establishment is typically a workplace or organised unit of the employer, though what exactly counts can depend on organisational structure. Employers cannot avoid obligations simply by staggering redundancies or splitting proposals artificially across sites.

The duty to consult collectively arises under Part IV of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA). Collective consultation runs alongside individual consultation with affected employees.

Why the Law Requires Collective Consultation

Large‑scale redundancy has significant economic and social consequences for employees, their families and local communities. Collective consultation ensures affected workers are informed, can participate in discussions about the proposals, and have an opportunity to suggest alternatives or mitigate the impact.

Collective consultation:

• Encourages transparent decision‑making by employers.
• Provides affected employees with information about roles at risk, reasons for reductions and selection criteria.
• Allows discussion of ways to avoid or reduce redundancies, and methods to limit adverse effects (such as retraining or redeployment).
• Helps ensure fair and non‑discriminatory processes.

Employer Obligations in Large‑Scale Redundancy

1. Start Consultation in Good Time

Employers must begin the collective consultation process before any dismissals occur. The minimum statutory consultation periods are:

• 20 to 99 proposed redundancies: at least 30 days before the first dismissal takes effect.
• 100 or more proposed redundancies: at least 45 days before the first dismissal takes effect.

These are minimum periods; longer consultations may be prudent in complex cases.

2. Inform the Redundancy Payments Service

Employers must notify the government's Redundancy Payments Service (RPS) before the consultation begins via the appropriate notification form (commonly HR1). The deadlines for notification align with the minimum consultation periods above:

• 30 days before the first dismissal for 20–99 proposed redundancies.
• 45 days before the first dismissal for 100 or more proposed redundancies.

Failure to notify the RPS in good time can result in criminal prosecution or civil sanctions.

3. Consult with Representatives

Employers must consult with:

• A recognised trade union representing affected employees; or
• Elected employee representatives if no union is recognised.

This consultation should be genuine, meaning employers must listen to feedback and seriously consider suggestions, even if they do not agree.

4. Provide Required Information

During collective consultation, employers should provide written details about:

• The business reasons for the proposed redundancies.
• Estimated numbers and categories of affected employees.
• Proposed selection and dismissal methods.
• Proposed redundancy payment arrangements.

Providing clear information enables meaningful dialogue and reduces uncertainty.

What Happens in Consultation?

Consultation has two strands:

• Collective consultation with representatives about strategic aspects of the redundancy proposals.
• Individual consultation with each employee affected, explaining personal impact, selection scores and options for alternative roles.

Consultation does not have to end in agreement. However, it must be made in good faith and genuinely aimed at reaching agreement. Employers should not make final redundancy decisions before the minimum consultation periods have passed and discussions have taken place.

Protecting Employee Rights

Protective Awards

If an employer fails to properly carry out collective consultation, affected employees can apply to an employment tribunal for a protective award. A protective award is essentially compensation for the failure to consult and is calculated in days' pay.

Normally, tribunals can award up to 90 days' pay per affected employee, but from April 2026 this maximum is set to increase to 180 days' pay for failures to consult in large‑scale redundancy situations.

Unfair Dismissal and Redundancy Pay

Employees with at least two years' continuous service can challenge the fairness of their redundancy dismissal at a tribunal, including issues with selection criteria and procedural fairness. Employers must show that redundancy was genuine and that fair selection and consultation processes were followed.

In addition:

• Statutory redundancy payments are due to qualifying employees with two or more years' service.
• Failure to make statutory redundancy pay can give rise to claims for unlawful deduction of wages.

Time Limits and Claims

Employees should be aware of time limits for bringing claims:

• Protective award claims for failure to consult must generally be brought within three months less one day from the date of dismissal or last affected day in the group.
• Unfair dismissal claims also generally must be presented within the same timeframe, following Early Conciliation notification to Acas.

Missing these time limits can prevent employees from pursuing legal remedies.

Examples and Practical Context

Large organisations often face substantial restructuring, such as closing divisions or consolidating operations. For example:

• A retail chain closing multiple stores may trigger 100 or more redundancies at a site, requiring the longer 45‑day consultation period.
• A manufacturing company proposing to cut 25 roles within one location must start consultation at least 30 days before dismissals.

Employers should avoid splitting proposals artificially across “establishments” to bypass consultation duties. Although current law focuses on single establishments, proposed legislative changes may in future count redundancies across an entire organisation for consultation triggers.

Risks of Non‑Compliance

Failing to comply with collective redundancy obligations can result in:

• Protective awards against the employer.
• Unfair dismissal claims if procedural fairness is breached.
• Criminal prosecution or fines for failing to notify statutory authorities like the RPS.
• Damage to employee morale and corporate reputation.

Practical Steps for Employers

1. Assess whether collective consultation is required before making any decisions.
2. Notify the Redundancy Payments Service in good time.
3. Plan a consultation strategy with accurate information and timelines.
4. Identify employee representatives for consultation early.
5. Document all consultation meetings and correspondence.
6. Engage individually with employees alongside collective consultation.

Practical Steps for Employees

1. Ask for written confirmation of proposals, timelines and selection criteria.
2. Check whether collective consultation has started in good time.
3. Consider electing a representative if no trade union exists.
4. Keep records of consultation meetings and employer communications.
5. Contact Acas or Citizens Advice early if you believe obligations have not been met.
6. Start Acas Early Conciliation if considering a tribunal claim.

Common Questions

What counts toward the 20 employee threshold?
Proposed redundancies include voluntary redundancies and redeployment offers; fixed‑term contracts ending as agreed do not count.

Does consultation have to last a fixed number of days?
Yes, the law requires minimum periods (30 or 45 days depending on numbers), but it can last longer if needed.

What happens if an employer starts dismissals early?
Any dismissal during or before the required consultation period may be automatically unfair and could lead to protective awards.

Can redundancy consultations occur remotely?
Yes. Consultation can be conducted remotely if agreed, but employers must still ensure meaningful participation and genuine dialogue.

Key Takeaways

Large‑scale redundancies in England and Wales trigger statutory collective consultation requirements when employers plan to dismiss 20 or more employees at an establishment within 90 days. Employers must notify the Redundancy Payments Service, consult with representatives for a minimum statutory period (30 or 45 days depending on numbers), and engage individually with staff. Failure to comply can lead to protective awards, unfair dismissal claims and penalties. Employees should understand their rights and practical steps to ensure consultation is carried out properly, while employers should plan rigorously to meet legal duties and reduce risk.