What is a Section 278 Agreement?

A Section 278 Agreement is a legal agreement between a developer and a highway authority to carry out highway works.

When Do Collective Redundancy Consultation Obligations Arise? Key Points For Employers

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.