Redundancy consultation is the legal duty on a UK employer to talk to affected staff about why jobs are at risk and how redundancies could be avoided before anyone is dismissed. If you're proposing 20 or more redundancies at one establishment within 90 days, collective consultation rules apply, with minimum periods of 30 days (20 to 99) or 45 days (100 or more). Fewer than 20, there's no fixed process, but you still need to consult.
The penalty for getting it wrong has just doubled. Acas says that from 6 April 2026 a tribunal can order a protective award of up to 180 days' pay for each affected employee if an employer fails to collectively consult, up from a maximum of 90 days' pay before that date. And employees don't need 2 years' service to claim it.
The rules by size of redundancy
| Proposed redundancies | Consultation rules | Minimum before any dismissal | Notify the Redundancy Payments Service |
|---|---|---|---|
| Fewer than 20 | No set process, but consult individually | None set by law | Not required |
| 20 to 99 (within 90 days, one establishment) | Collective consultation with representatives | 30 days | Form HR1, 30 days before the first redundancy |
| 100 or more | Collective consultation with representatives | 45 days | Form HR1, 45 days before the first redundancy |
GOV.UK warns that failing to notify the Redundancy Payments Service can lead to an unlimited fine. It also says there's no maximum length for consultation: the 30 and 45 days are minimums before dismissals take effect.
Small redundancies: under 20 people
Most small businesses will be here. GOV.UK says there are no set rules, but it's good practice to consult fully, and a tribunal could find the dismissals unfair if you don't. Its blunter line for employers: if you don't consult employees in a redundancy situation, any redundancies will 'almost certainly be unfair'. Acas adds that individual consultation meetings can be held by phone if both sides agree and there's a clear need, and that you should consider letting employees bring a companion.
Collective consultation, step by step
- Notify the Redundancy Payments Service by submitting form HR1 online, before consultation starts.
- Consult trade union representatives, elected employee representatives, or staff directly if there are none.
- Give written details of the reasons, the numbers and categories of employees involved, how you'll select people, how you'll carry out the redundancies and how you'll work out redundancy pay.
- Respond to requests for more information, and give enough time to consider it.
- Consult on ways to avoid redundancies, reduce the numbers and limit the effects, such as retraining.
- Only after consultation, issue notices with the agreed leaving dates.
GOV.UK is clear that consultation doesn't have to end in agreement, but it must be carried out with a view to reaching one. Acas makes the same point from the other side: you don't have to accept employees' suggestions, but ignoring sensible ideas to avoid or reduce redundancies can make the process unfair.
Fair and unfair selection
| Fair criteria (GOV.UK) | Automatically unfair reasons |
|---|---|
| Skills, qualifications and aptitude | Pregnancy or maternity |
| Standard of work or performance | Family leave, including parental, paternity, adoption or time off for dependants |
| Attendance | Being an employee or trade union representative |
| Disciplinary record | Being part-time or fixed-term |
| Length of service, only if justified and not used alone | Age, disability, race, religion, sex, sexual orientation and the other protected characteristics |
GOV.UK specifically warns against relying on length of service as your only criterion, because that's likely to be age discrimination.
Alternatives you must consider
- Seeking volunteers for redundancy or early retirement.
- Restricting recruitment and reducing overtime.
- Moving people into vacancies elsewhere in the business.
- Short-time working or temporary lay-offs, if the contract allows.
- Offering suitable alternative work, with a 4-week trial period that doesn't cost the employee their redundancy pay if it doesn't work out.
Some employees have priority for alternative jobs, including those who are pregnant or on or returning from maternity, adoption or longer shared parental leave. For those returning from leave, GOV.UK says the protection lasts 18 months from the birth or adoption.
For employees: what consultation gives you
You're entitled to be told why you're at risk and to discuss alternatives. If your employer starts late or doesn't consult at all, GOV.UK says you can claim at an employment tribunal. You also have the right to reasonable time off to look for work or arrange training once you're under notice. Our guides to redundancy pay and unfair dismissal cover what comes next.
The verdict
Consultation isn't a box to tick before the decision you've already made. Tribunals look for a real chance to change the outcome, and the new 180-day protective award makes skipping collective consultation very expensive. If you're anywhere near 20 proposed redundancies, plan for collective consultation, file the HR1 on time, and write down every alternative you considered and why it did or didn't work.
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Frequently asked questions
When is redundancy consultation required?
Employers should always consult staff in a redundancy situation. Collective consultation is legally required when 20 or more redundancies are proposed at one establishment within 90 days.
How long is the redundancy consultation period?
There's no maximum. The minimum before dismissals take effect is 30 days for 20 to 99 redundancies and 45 days for 100 or more.
What is a protective award?
Compensation a tribunal can order if an employer fails to collectively consult. From 6 April 2026 it can be up to 180 days' pay per affected employee, up from 90 days before.
Who represents employees in collective consultation?
A recognised trade union's representatives, or elected employee representatives if there's no union or it isn't recognised. If there are none, affected employees can stand for election and vote, and employers consult staff directly where no representatives exist.
Can I be made redundant while on maternity leave?
You can, but GOV.UK says employees on or returning from maternity leave must be offered any suitable alternative job first, ahead of colleagues, and that protection runs for 18 months from the birth.
What information must an employer give in collective consultation?
Written details of the reasons for the redundancies, the numbers and categories of employees involved, how people will be selected, how the redundancies will be carried out and how redundancy pay will be worked out.
Is there a consultation period for fewer than 20 redundancies?
There's no fixed minimum period, but you still need to consult individually, or the dismissals are likely to be unfair.
