Recent changes to the UK collective redundancy framework have significant implications for employers planning restructures, site closures or workforce reductions. While the fundamentals of collective consultation remain familiar, updated guidance and case law have clarified how and when obligations arise and the risks of getting it wrong.
In a recent article for People Management, Chloe Grant, Senior Associate, and Leigh Edgar, Senior Consultant, explored what these changes mean in practice for employers. Below, we highlight the key takeaways and the practical steps organisations should be considering now.
When does collective consultation apply?
Collective consultation obligations are triggered where an employer is proposing to dismiss 20 or more employees as redundant within a 90-day period at a single establishment.
What has become clearer is that employers must take a more cautious approach when assessing:
- What counts as a “proposal” to dismiss
- When consultation must begin
- How dismissals across different roles, locations or business units may aggregate
Delays in recognising that a proposal exists can significantly increase exposure to claims.
The importance of timing
One of the most critical points reinforced in recent developments is when consultation must begin. Consultation should start:
- At a formative stage, when proposals are still capable of change
- Before decisions are finalised, not once outcomes are effectively predetermined
Starting consultation too late is one of the most common and costly mistakes employers make, often leading to protective award claims of up to 90 days’ pay per affected employee.
Who should be consulted?
Where a recognised trade union is in place, consultation must take place with union representatives. Otherwise, employers must arrange for the election of employee representatives.
This process must be:
- Fair
- Properly communicated
- Supported with clear information about the proposals
Skipping or rushing elections can invalidate the consultation process entirely.
Information employers must provide
Employers are required to provide specific statutory information, including:
- The reasons for the proposed redundancies
- The numbers and descriptions of affected employees
- The proposed selection methods
- The timing of dismissals
- Details of redundancy payments
Incomplete or unclear information can render consultation meaningless even if meetings have taken place.
Common pitfalls for employer
Chloe and Leigh highlight several recurring problem areas, including:
- Treating collective consultation as a tick-box exercise
- Running individual consultations before collective discussions are meaningful
- Underestimating the scope of “establishment”
- Failing to factor in agency workers and atypical working arrangements
Each of these can create legal risk and damage employee relations at an already sensitive time.
Practical steps employers should take now
To reduce risk and ensure compliance, employers should:
- Engage HR and legal advisers early
- Map out proposed changes well in advance
- Build in sufficient time for genuine consultation
- Keep detailed records of discussions and correspondence
- Align legal compliance with clear, empathetic communication
Handled correctly, collective consultation can support better decision-making and help preserve trust during periods of change.
If your organisation is considering redundancies or restructuring, taking advice at an early stage can make a material difference both legally and commercially.
Read the full article here: https://www.peoplemanagement.co.uk/article/1957481/collective-redundancy-changes-employers-need-know
