Whenever an employer is proposing multiple redundancies, it is essential to consider whether collective consultation obligations are triggered. Under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA), the duty arises where 20 or more redundancies are proposed at one establishment within a 90-day period. This requires at least 30 days’ consultation (or 45 days where 100 or more redundancies are proposed).

The risks of getting this wrong are significant—and have increased. Since April 2026, the maximum protective award for failure to collectively consult has doubled to 180 days’ gross pay per affected employee, uncapped. For large-scale exercises, the financial exposure can be substantial.

A key point often overlooked is that “redundancy” is defined broadly. It includes most ‘no-fault’ dismissals, not just traditional redundancy situations. This means dismissals for “some other substantial reason” (SOSR) – for example, business reorganisations – may also count towards the threshold.

Other important considerations include:

  • Voluntary redundancies count towards the 20-employee threshold
  • Fixed-term contracts are excluded only where they expire naturally; early termination will count
  • The threshold is assessed per legal entity, not across a group
  • The concept of “establishment” remains key, meaning different sites are generally assessed separately

Employers should also focus on proposed dismissals, not those already completed. In Micro Focus v Mildenhall, the EAT confirmed that the 90-day test is forward-looking – capturing planned redundancies, not historic ones.

Looking ahead, the Employment Rights Act 2025 introduces a potential shift (likely from 2027), with proposals to add a new threshold based on total redundancies across a business, regardless of establishment. The government recently launched a consultation on this proposal, putting forward a preferred option of using a figure trigger only, with the trigger proposed to be between 250-1000 redundancies across a business. Employers should keep a close eye on developments in this area.

Key takeaway: always assess collective consultation obligations early. Failure to comply can result in significant financial penalties, potential uplifts in compensation, and even criminal liability for failing to file an HR1 form.

About Jon Dunkley

Jon Dunkley is a Partner at Wollens and heads up the firm’s Regulatory Department. Based at our North Devon office, Jon is a highly experienced solicitor with a broad commercial and regulatory practice, supporting businesses, professionals and senior employees across a wide range of legal issues.

Speak to Jon Dunkley

Jon is a Partner at Wollens and can advise you. Contact Jon via email jon.dunkley@wollens.co.uk or call 01271 341021.

Jon Dunkley - Wollens Solicitors Devon

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.

Related News & Insights

3 minute read
When 25% becomes 2.5%: a useful reminder on Acas Code uplifts - Wollens Solicitors Devon

When 25% becomes 2.5%: a useful reminder on Acas Code uplifts

Read Article
3 minute read
Belief discrimination: where are we now? - Wollens Solicitors Devon

Belief discrimination: where are we now?

Read Article
3 minute read
Training cost clawbacks: when does repayment become an unlawful restraint? - Wollens Solicitors Devon

Training cost clawbacks: when does repayment become an unlawful restraint?

Read Article
3 minute read
Third-party harassment is coming back: are you ready? - Wollens Solicitors Devon

Third-party harassment is coming back: are you ready?

Read Article
3 minute read
Sexual harassment training: When does training become ‘stale’? - Wollens Solicitors Devon

Sexual harassment training: When does training become ‘stale’?

Read Article
3 minute read
Equal pay, but not just for sex? Government consults on a major rethink of pay discrimination - Wollens Solicitors Devon

Equal pay, but not just for sex? Government consults on a major rethink of pay discrimination

Read Article
1 minute read
Sticking to the legal minimum is not necessarily good HR practice - Wollens Solicitors Devon

Sticking to the legal minimum is not necessarily good HR practice

Read Article
2 minute read
The right to be accompanied: don’t ask, don’t get? - Wollens Solicitors Devon

The right to be accompanied: don’t ask, don’t get?

Read Article