Redundancy Consultation Requirements: What Employers Must Do

Redundancy consultation is a legal requirement that employers must follow when proposing to make roles redundant. The process exists to ensure employees and their representatives are informed about proposed redundancies, have a genuine opportunity to influence or challenge the proposal, and that any dismissals are carried out fairly and transparently. In England and Wales, the rules governing redundancy consultation arise from statute - primarily the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) - and are underpinned by government and Acas guidance. Failing to consult properly can lead to employment tribunal claims for unfair dismissal and protective awards against employers.

What Is Redundancy Consultation?

Redundancy consultation is the process by which an employer discusses and seeks input on proposals to dismiss employees because their role is no longer required - either wholly or in part - due to business changes such as downsizing, restructuring or economic pressures. Employers must communicate clearly, provide relevant information, consider alternatives, and engage with employees or their representatives with a view to reaching agreement.

Consultation should be genuine and meaningful, not merely an administrative formality. This means listening to feedback, responding to questions and genuinely considering suggestions for avoiding or reducing redundancies.

When Consultation Is Legally Required

Individual Consultation

For fewer than 20 redundancies within a 90‑day period, there is no statutory requirement for collective consultation, but employers should still consult individually with each employee at risk. Individual consultation should occur before any final decisions are made and should allow time for discussion on alternatives and concerns.

Collective Consultation

A statutory duty to collectively consult arises when an employer proposes to dismiss 20 or more employees at one establishment within a 90‑day period. This collective requirement applies whether the redundancies are compulsory or voluntary, provided the threshold is met.

An “establishment” is the unit within the organisation where the employees work; this could be a single location or a distinct part of the business with its own workforce and organisational structure.

Minimum Consultation Periods

The law sets minimum timeframes for consultation before any dismissal notices can be issued:

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

These time periods represent minimum statutory requirements; employers can - and often should - consult earlier or for longer in complex situations.

Who Must Be Involved in Consultation

Representatives

For collective consultation, employers must consult with one of the following:

• Recognised trade union representatives, if a union is present and recognised; or
• Elected employee representatives where there is no recognised trade union.

If no representatives exist at the outset, employers should facilitate the election of representatives by affected employees.

Individual Employees

Even in collective consultation, employers should also consult individual employees about how the proposals affect them personally, including how they will be selected for redundancy and any alternatives to dismissal.

Information Employers Must Provide

In order for consultation to be meaningful, employers should provide detailed written information to representatives or employees, including:

• The reasons for the proposed redundancies.
• The number and categories of employees involved.
• The proposed selection methods for deciding who is at risk.
• How the redundancy process will be carried out.
• The method of calculating redundancy pay.
• Proposed measures to avoid or reduce redundancies.

Providing full information enables representatives and employees to make informed responses and suggest alternatives that may mitigate the impact of redundancies.

Notification to the Government

Where collective consultation applies, employers must notify the Secretary of State by submitting an HR1 form before the consultation begins.

• For 20 to 99 proposed redundancies, notification must be made at least 30 days before the first dismissal.
• For 100 or more proposed redundancies, this must be done at least 45 days before the first dismissal.

Failure to notify the government in time can lead to prosecution and fines.

What Consultation Should Involve

Consultation is not satisfied by simply informing employees of decisions already taken. Employers should:

• Allow employees and representatives to ask questions.
• Explore alternatives to dismissal, such as redeployment, reduced hours or voluntary redundancy.
• Consider proposals to limit the effects of redundancies, such as training support and outplacement services.
• Document discussions and responses, demonstrating that proposals were considered genuinely.

Even where a clear business case exists for redundancies, meaningful consultation can reduce the risk of successful unfair dismissal claims by showing that employees were treated fairly and were given real opportunities to influence outcomes.

Risks of Failing to Consult Properly

If an employer fails to consult correctly, affected employees can bring claims to an employment tribunal. One common remedy in collective consultation failures is a protective award, which requires the employer to pay compensation to each affected employee for the period that consultation should have taken place, typically up to 90 days' pay per employee (with proposals to extend this to 180 days' pay under upcoming reforms).

Tribunals assess whether consultation was genuine and meaningful; token consultation or consultation after decisions have been made is unlikely to be sufficient.

Practical Steps for Employers

• Plan early: Start consultation as soon as redundancy proposals are at a formative stage.
• Communicate clearly: Provide timely, detailed information to employees and representatives.
• Document the process: Keep records of meetings, feedback and decisions.
• Consider alternatives: Demonstrate that alternative measures were discussed and evaluated.
• Meet statutory minimums: Ensure that 30‑ or 45‑day consultation periods are observed where applicable.

Common Questions

Do fixed‑term employees count for consultation thresholds?
Employees on fixed‑term contracts due to expire at the agreed end date are generally not counted towards collective consultation thresholds unless their contract is being terminated early because of redundancy.

Does consultation need to result in agreement?
No. Consultation does not have to end in agreement, but it must be conducted with a view to reaching agreement and be meaningful.

Can an employer stagger redundancies to avoid consultation?
Employers should not stagger redundancies to avoid consultation obligations. Tribunals can aggregate proposals within a 90‑day window to determine whether the statutory consultation threshold is met.

Key Takeaways

Employers proposing redundancies in England and Wales must follow statutory consultation requirements designed to protect employees and support fair processes. Individual consultation is expected for any proposed redundancy, and collective consultation becomes a legal duty when at least 20 employees at one establishment are at risk within 90 days. Employers must notify the government, engage with employee representatives or unions, provide comprehensive information, and allow sufficient time - typically at least 30 or 45 days depending on the number of proposed redundancies - for genuine discussion. Failure to comply can lead to employment tribunal claims and protective awards. Early planning, clear communication, and thoughtful engagement can help employers manage redundancy processes lawfully and minimise legal and operational risks.