Collective redundancy consultation: when it applies and how long

When it applies

If you propose to dismiss 20 or more employees as redundant at one establishment within a period of 90 days or less, you must consult collectively, as well as with each person individually.

Count everyone you propose to dismiss in that 90 days. That includes people whose contracts would end because they don't accept new terms. What counts is what you are proposing, not dismissals that have already happened.

How long before the first dismissal

• 20 to 99 proposed redundancies: consultation starts at least 30 days before the first dismissal takes effect
• 100 or more: at least 45 days before

These are minimums. Consultation should start while the plans are still proposals, and it isn't finished until it has been meaningful. Don't give anyone notice of dismissal until it has properly finished.

Who you consult

A recognised trade union, if there is one for the affected group. If not, existing employee representatives with authority to be consulted, or representatives elected for this purpose. If employees don't elect anyone after you've given them the chance, give the information to each affected employee instead.

What you must give representatives in writing

• the reasons for the proposals
• the numbers and descriptions of the employees you propose to dismiss
• the total number of employees of that description at the establishment
• how you propose to select people
• how and over what period the dismissals will be carried out
• how you propose to work out any redundancy pay above the statutory amount
• the number of agency workers, where they work and what they do

Consultation must cover ways of avoiding the dismissals, reducing the numbers and softening the effect, with a view to reaching agreement.

The HR1

Notify the Insolvency Service on form HR1 at least 30 or 45 days (matching the periods above) before the first dismissal takes effect, and before anyone is given notice. Give a copy to the representatives. Not notifying is a criminal offence with an unlimited fine.

If it goes wrong

A tribunal can make a protective award of up to 180 days' gross pay for each affected employee, with no cap on a week's pay. Over a whole programme that can be more than the redundancy pay itself.

Our collective consultation checker works out the dates and the maximum protective award. Bulk redundancy costing puts it beside the full cost of the programme.