Collective Redundancy Consultation
The obligation to collectively consult will depend on the number of people impacted across the business, rather than in one workplace
This page was first published on 21 August 2024, the latest update was on 12 October 2024.
Labour plan to change the law on collective redundancy consultation so that whether the obligation to collectively consult has been triggered will depend on the number of people impacted across the business, rather than in one workplace.
Current Position
A special information and consultation regime applies where there are 20 or more affected employees who are proposed to be dismissed for a ‘non-fault’ reason within a particular time frame. There’s no time limit for how long the period of consultation should be, but the minimum is:
| Number of Redundancies | Minimum Consultation Period | |
| 19 or less | there are no rules about timescales for the consultation | |
| 20 to 99 | the consultation must start at least 30 days before any dismissals take effect | |
| 100 or more | the consultation must start at least 45 days before any dismissals take effect |
Also, if the employer proposes to make redundancies affecting 20 or more employees within a particular time frame, it must notify BIS.
Proposed Changes
In April 2015 the European Court of Justice reached its decision in the “Woolworths case” concerning the duty to consult collectively under the Collective Redundancies Directive. Consequently, the meaning of “establishment” for the purposes of determining when that duty is triggered changed to the establishment to which the workers are assigned to carry out their duties. So, in the Woolworths case that meant each individual shop, rather than the business as a whole.
This plan will reverse the Woolworths loophole; meaning employers with more than one site will need to keep a close eye on the number of redundancies they plan across the whole business to know when collective consultation obligations have been triggered. Collective redundancy consultation will be required more often than is currently the case.
Risks
If you have multiple sites you will need to give consideration as to how redundancies are reported and tracked across the business as a whole. Without checks in place the change in the law could result in the trigger to collectively consult being missed. There is no indication so far that there will be any change to the length of the consultation period.
Consultation
This consultation asks for views on measures to strengthen the protections for employees whose employer fails to consult during redundancy or dismissal and re-engagement practices.
Protective Award
Where employers do not comply with the consultation obligations, the employee is able to make a claim to an Employment Tribunal, which may make a protective award of up to 90 days’ pay to each affected employee. The questions relate to the maximum period of the protective award that a tribunal can award.
Interim Relief
Employees who submit a tribunal claim for unfair dismissal can request an interim relief order. If successful the tribunal would issue an order for the employer to re-instate the employee pending the final hearing; or, if the employer is unwilling to re-employ them, to continue to pay the employee their wages and benefits until the full hearing. Views are sought on whether interim relief should be available to employees who:
- bring claims for the protective award.
- bring an unfair dismissal claim under the new right which will be introduced by the Employment Rights Bill (at day one of employment)
The consultation is open until Monday 2 December 2024.
Responding To The Consultation
If you would like to respond personally click the button below and scroll down to Your Views and How to Respond. Alternativel send your views to me and I will respond on your behalf (Please put Redundancy Consultation in the subject line of your email).
Top Tips
If you have more than one site and are considering redundancies keep a close eye on the number of employees who will be involved to ensure you do not exceed the 20 in 90 day period in the short-term.
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