Redundancy Consultation for Employers: A Guide

Redundancy consultation is one of the most scrutinised stages of any redundancy process under UK employment law. While redundancy is a potentially fair reason for dismissal under the Employment Rights Act 1996, the fairness of the dismissal will often depend not on the business rationale itself, but on whether the employer conducted a proper and meaningful consultation.

Where 20 or more redundancies are proposed, separate collective consultation obligations arise under the Trade Union and Labour Relations (Consolidation) Act 1992. Failure to comply can result in protective awards of up to 90 days’ gross pay per affected employee. Even where only one employee is at risk, inadequate consultation can render a dismissal unfair.

What this article is about:
This guide explains what redundancy consultation means in practice, when it is legally required, how long the redundancy consultation period must last, what happens during consultation meetings, whether employees must work during consultation, and how employers can structure the process to minimise tribunal risk. It covers both individual and collective redundancy consultation, including statutory timelines, meeting structure, common mistakes and compliance safeguards, drawing on wider UK employment law compliance principles and practical workforce planning considerations.

Section A: What Is Redundancy Consultation?

Redundancy consultation is the process by which an employer engages with employees who are at risk of dismissal due to redundancy, before any final decision to dismiss is made. It is a legal safeguard designed to ensure fairness, transparency and proper consideration of alternatives.

In simple terms, consultation requires the employer to inform employees that redundancy is being proposed, explain the reasons, and give them a genuine opportunity to respond before dismissal takes effect.

Importantly, consultation must take place while proposals are still at a formative stage. If a decision has already effectively been made, and consultation is merely a formality, the process is likely to be unlawful.

1. The Legal Basis of Redundancy Consultation

Redundancy consultation obligations arise from two principal legal sources:

• Employment Rights Act 1996 (ERA 1996) – governs unfair dismissal and statutory redundancy pay. Even where only one employee is affected, the employer must follow a fair process, which includes meaningful consultation.
• Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) – imposes additional collective consultation obligations where 20 or more employees are proposed to be dismissed as redundant within a 90-day period at one establishment.

The legal consequences differ depending on which regime applies:

• Failure to conduct fair individual consultation may lead to an unfair dismissal claim.
• Failure to comply with collective consultation obligations may lead to a protective award, which can be up to 90 days’ gross pay per affected employee.

Employers must therefore understand whether they are dealing with individual redundancy consultation or collective redundancy consultation, as the procedural requirements are not the same.

2. Redundancy Consultation vs the Redundancy Process

Redundancy consultation is one stage within the wider redundancy process.

A compliant redundancy process typically includes:

• Identifying a genuine redundancy situation
• Defining the selection pool
• Establishing objective selection criteria
• Provisionally identifying employees at risk
• Consulting with affected employees
• Considering alternatives to dismissal
• Confirming dismissal if no alternatives exist
• Offering a right of appeal

Consultation sits at the centre of this process. It is not an administrative step after selection has already been finalised. Instead, consultation must be capable of influencing:

• The scope of the selection pool
• The choice of selection criteria
• The employee’s individual selection score
• The availability of suitable alternative employment

If consultation cannot influence these matters, it is unlikely to be considered meaningful.

3. What “Meaningful Consultation” Means in Practice

UK case law makes clear that consultation must be genuine and conducted with an open mind. While the employer is not required to reach agreement with employees, consultation must be carried out with a view to reaching agreement, particularly in collective redundancy scenarios under TULRCA.

In practice, meaningful consultation requires employers to:

• Provide sufficient information about the redundancy proposal
• Allow employees reasonable time to consider that information
• Invite representations and questions
• Consider suggestions for avoiding redundancy
• Respond to points raised
• Reassess decisions where appropriate

Consultation must begin when redundancy is still a proposal, not after dismissal has been decided.

A common tribunal finding is that employers engaged in “sham consultation” — where meetings were held but outcomes were predetermined. This is one of the most common reasons redundancy dismissals are found unfair.

Section Summary: Redundancy consultation is a legally required stage of a fair redundancy process. It applies whether one employee or 100 employees are affected. Under the Employment Rights Act 1996, consultation forms part of procedural fairness. Where 20 or more redundancies are proposed within 90 days at one establishment, additional collective consultation duties arise under TULRCA. The central legal principle is that consultation must be meaningful and capable of influencing the outcome. Employers who treat consultation as a formality significantly increase their tribunal risk.

Section B: When Is Redundancy Consultation Required?

Redundancy consultation is required whenever an employer is proposing to dismiss employees by reason of redundancy. The duty arises at the point redundancy becomes a real possibility, not when a final decision has already been taken.

The timing of consultation is critical. Tribunals frequently examine whether consultation began early enough to allow genuine influence over the outcome. If consultation starts only after selection decisions have effectively been finalised, the dismissal may be procedurally unfair.

The legal requirements differ depending on the number of redundancies proposed.

1. The Trigger Point for Consultation

Consultation must begin when redundancies are proposed, meaning when the employer is contemplating dismissals and the proposal is at a formative stage.

This means:

• The business case should be developed but not irrevocably decided.
• The selection pool should be provisional, not fixed.
• Selection criteria should be open to discussion.
• No final decision to dismiss should have been taken.

If an employer announces that redundancies “will” happen, rather than that they are “proposed”, this may indicate that consultation is not genuine.

In practice, consultation should begin:

• After identifying a potential genuine redundancy situation
• Before issuing final redundancy notices
• While alternatives remain under consideration

2. Individual Redundancy Consultation (1–19 Employees)

Where fewer than 20 redundancies are proposed within a 90-day period at one establishment, there is no statutory minimum consultation period.

However, employers must still comply with the requirements of fairness under the Employment Rights Act 1996. In practice, that means employees must be consulted individually in a way that is meaningful and capable of influencing the decision to dismiss.

This includes ensuring that:

• Employees are warned that they are at risk.
• They are given an opportunity to respond and challenge their selection.
• The selection pool and selection criteria are open to representations.
• Alternatives to redundancy, including redeployment and suitable alternative employment, are properly explored.

There is no prescribed number of meetings, but one brief meeting is rarely sufficient unless the circumstances are extremely straightforward.

The length of the consultation will depend on factors such as:

• The complexity of the restructuring
• The size of the organisation
• Whether selection scoring is involved
• Whether redeployment opportunities exist

Even where only one employee is affected, consultation must be meaningful and properly documented.

3. Collective Redundancy Consultation (20 or More Employees)

Where an employer proposes to dismiss 20 or more employees as redundant within a 90-day period at one establishment, collective consultation obligations arise under the Trade Union and Labour Relations (Consolidation) Act 1992. A useful starting point for employers is to treat this as a formal collective redundancy compliance exercise, supported by individual consultation for each affected employee.

Three elements must be satisfied to trigger collective consultation:

• There must be a proposal to dismiss.
• The reason must be redundancy.
• 20 or more employees must be affected within 90 days at one establishment.

The concept of “one establishment” is fact-sensitive. For multi-site employers, each site may be treated as a separate establishment depending on how the workforce is organised. This can significantly affect whether the collective consultation threshold is reached.

Where the threshold is met, employers must consult in good time and ensure consultation starts at least:

• 30 days before the first dismissal takes effect (20–99 redundancies), or
• 45 days before the first dismissal takes effect (100 or more redundancies).

Failure to comply can result in a protective award of up to 90 days’ gross pay per affected employee.

4. Common Business Scenarios That Trigger Consultation

Redundancy consultation may be required in a range of business circumstances, including:

• Organisational restructuring
• Departmental mergers
• Site closures
• Reduced demand for products or services
• Loss of a major contract
• Automation or technological change
• Outsourcing or insourcing functions

The key question is whether the employer proposes to dismiss employees because:

• The business is closing
• The workplace is closing
• The requirement for employees to carry out work of a particular kind has ceased or diminished

If one of these statutory redundancy definitions applies, consultation obligations are likely to arise.

5. When Consultation Is Not Required

Consultation is not required where:

• A fixed-term contract expires at the agreed end date and is not renewed, provided this does not form part of a wider redundancy proposal.
• Dismissals are for reasons unrelated to redundancy (for example misconduct or capability).
• Fewer than 20 redundancies are proposed across multiple separate establishments, such that the threshold is not met at any one establishment.

However, employers must exercise caution. Artificially splitting proposals or staggering dismissals to avoid the 20-employee threshold may be scrutinised by a tribunal.

Section Summary: Redundancy consultation is required whenever redundancy dismissals are proposed. For fewer than 20 redundancies, consultation must be meaningful to satisfy unfair dismissal principles under the Employment Rights Act 1996. Where 20 or more redundancies are proposed within 90 days at one establishment, statutory collective consultation obligations arise under TULRCA, including minimum consultation periods and representative engagement requirements. The duty to consult arises early, at the proposal stage. Starting consultation too late is one of the most common procedural errors made by employers.

Section C: Redundancy Consultation Period

One of the most common questions employers ask is: how long must a redundancy consultation period last?

The answer depends on whether the redundancies fall within the collective consultation regime or are individual redundancies. The law distinguishes between statutory minimum consultation periods, which apply only in collective cases, and the broader requirement for consultation to be fair and meaningful.

Understanding this distinction is critical, as meeting the statutory minimum period does not automatically make a dismissal fair.

1. Redundancy Consultation Period: 20–99 Employees

Where an employer proposes to dismiss between 20 and 99 employees as redundant within a 90-day period at one establishment, consultation must begin in good time and must start at least 30 days before the first dismissal takes effect.

The key point is that the minimum period runs backwards from the date the first redundancy dismissal takes effect, not from the date notice is issued.

This means:

• Consultation may overlap with notice periods.
• Notice may be issued before the end of the consultation period, provided the dismissal does not take effect before the 30-day minimum has expired.
• Employers must still ensure consultation is genuine and not truncated for convenience.

Merely waiting 30 days is insufficient if meaningful engagement has not taken place.

2. Redundancy Consultation Period: 100 or More Employees

Where 100 or more employees are proposed to be dismissed within a 90-day period at one establishment, consultation must begin in good time and must start at least 45 days before the first dismissal takes effect.

The same principles apply as above:

• The 45-day minimum is a floor, not a target.
• Consultation must be capable of influencing the outcome.
• Employers must provide representatives with prescribed information in writing.
• Failure to comply can lead to protective awards of up to 90 days’ gross pay per employee.

For large-scale redundancies, tribunals expect structured consultation processes with multiple meetings, clear documentation and genuine consideration of alternatives.

3. Redundancy Consultation Period for 1 Person

Where fewer than 20 redundancies are proposed, there is no statutory minimum consultation period.

However, consultation must still be fair and meaningful under unfair dismissal principles.

There is no prescribed number of days or meetings. Instead, tribununals assess whether the employer acted reasonably in all the circumstances.

Factors influencing what is “sufficient” include:

• The complexity of the restructure
• Whether a selection pool is involved
• Whether scoring criteria are applied
• The availability of alternative roles
• The employee’s length of service

In straightforward situations, for example where a role is genuinely unique and no selection exercise is required, consultation may be relatively brief. In more complex scenarios involving scoring and redeployment, multiple meetings over several weeks may be appropriate.

The absence of a statutory minimum does not mean employers can conduct consultation hastily. A rushed or token process can still render dismissal unfair.

4. Can Consultation and Notice Overlap?

A frequent source of confusion is whether notice of redundancy dismissal can be issued during the consultation period.

In collective redundancy cases:

• The restriction is that dismissals must not take effect before the minimum consultation period has expired.
• Notice may be issued during consultation, provided the effective date of termination falls after the statutory minimum period.

In individual redundancy cases:

• There is no statutory minimum consultation period.
• However, issuing notice before meaningful consultation has taken place may undermine procedural fairness.

Employers should ensure that consultation is genuinely completed before confirming dismissal decisions, even if notice technically overlaps with consultation.

5. Minimum Period vs Sufficient Consultation

It is important to distinguish between:

• Statutory minimum consultation periods, and
• What is sufficient for fairness.

For example:

• An employer may comply with the 30-day collective minimum but still face a protective award if consultation was superficial.
• An employer making one employee redundant may complete consultation in two weeks, but still face an unfair dismissal claim if alternatives were not properly explored.

Tribunals focus on substance over form. The central question is whether the employee or representatives had a genuine opportunity to influence the decision.

Section Summary: The redundancy consultation period depends on the scale of the proposal. For 20–99 redundancies, consultation must begin in good time and at least 30 days before the first dismissal takes effect. For 100 or more redundancies, the minimum period is 45 days. For one to nineteen redundancies, there is no statutory minimum, but consultation must be meaningful and fair. Meeting the minimum time requirement alone is not enough. Employers must ensure consultation is genuine, properly documented and capable of influencing the outcome.

Section D: Redundancy Consultation Meetings

Redundancy consultation is carried out through structured meetings between the employer and affected employees or their representatives. These meetings form the evidential backbone of the process. If challenged in a tribunal, the adequacy of consultation will often be judged by what was said, what was considered and what was recorded during these discussions.

There is no fixed statutory formula for how consultation meetings must be conducted. However, tribunals expect a process that is organised, transparent and genuinely responsive.

1. What Happens at a Redundancy Consultation Meeting?

The first consultation meeting typically takes place after employees have been informed that they are “at risk” of redundancy.

The purpose of the initial meeting is to:

• Explain the business rationale for the proposed redundancies
• Confirm that dismissal is a proposal, not a final decision
• Identify the proposed selection pool
• Explain the proposed selection criteria
• Outline the proposed timeline
• Discuss possible alternatives to redundancy
• Invite questions and representations

Employers should provide relevant documentation in advance where possible, including:

• Organisational charts, current and proposed
• Selection criteria and scoring matrices, for example a redundancy selection matrix
• At-risk letters
• Details of any redeployment opportunities

The tone of the meeting is important. The discussion should be framed as a proposal open to input, rather than an announcement of a final outcome.

2. The Second Consultation Meeting

In many redundancy processes, particularly those involving scoring, a second consultation meeting is necessary.

The second meeting commonly addresses:

• The employee’s individual selection score
• How that score was reached
• Any inaccuracies or challenges raised by the employee
• Updated information about alternative roles
• Responses to representations made in the first meeting

This meeting provides the employee with an opportunity to challenge their provisional selection and raise any concerns about fairness or discrimination.

Where an employee identifies scoring errors or new evidence, the employer should genuinely review the assessment. Failure to reconsider scoring can undermine the fairness of the process.

In more complex restructures, more than two meetings may be required.

3. How Many Consultation Meetings Are Required?

There is no fixed number of required meetings.

However:

• A single brief meeting is rarely sufficient in anything other than the simplest redundancy situation.
• Where scoring exercises, alternative employment searches or collective consultation are involved, multiple meetings are usually expected.
• Consultation should continue for as long as there are active representations being considered.

The legal test is whether consultation was meaningful and reasonable in the circumstances.

Tribunals do not require perfection, but they do expect evidence that the employer listened, considered and responded.

4. Questions Employees May Raise During Consultation

Employees are entitled to question the basis of the redundancy and their selection. Common areas of challenge include:

• The composition of the selection pool
• The fairness and weighting of selection criteria
• The accuracy of individual scores
• Whether colleagues performing similar roles were included
• Whether alternative roles were genuinely considered
• Whether part-time status, disability, maternity leave or age may have influenced scoring

Employers must approach these questions carefully. In particular, selection criteria must not directly or indirectly discriminate against protected characteristics under the Equality Act 2010.

For example:

• Using attendance records without adjusting for disability-related absence
• Scoring on flexibility that disadvantages part-time workers
• Weighting length of service in a way that disproportionately affects younger employees

These risks often emerge during consultation and must be addressed.

5. Consultation in Collective Redundancy Cases

Where 20 or more redundancies are proposed, consultation must take place with appropriate representatives.

In collective consultation meetings, employers must:

• Provide statutory information in writing
• Engage in discussion with a view to reaching agreement
• Allow representatives sufficient time and facilities to consult affected employees
• Respond to counter-proposals

Collective consultation often runs alongside individual consultation. Even where representatives are consulted, individual employees should still be informed and consulted regarding their personal circumstances.

Failure to consult representatives properly can result in a protective award of up to 90 days’ gross pay per employee.

6. Documentation and Record Keeping

Accurate records are essential.

Employers should document:

• Dates of meetings
• Attendees
• Key points discussed
• Representations made
• Responses provided
• Any changes made as a result

Where scoring is involved, written justification should be retained.

In tribunal proceedings, the quality of documentation can significantly influence whether a process is found fair.

Section Summary: Redundancy consultation meetings must be structured, documented and genuinely responsive. In most cases, more than one meeting will be required. Employees must have the opportunity to challenge their selection, raise alternatives and question scoring. In collective redundancy situations, consultation must also take place with appropriate representatives, and statutory information must be provided in writing. The credibility of the redundancy process often depends on what happens in these meetings and how well it is recorded.

Section E: Redundancy Consultation Meeting Checklist and Script

Preparation is one of the strongest safeguards against unfair dismissal claims. Many redundancy consultation failures occur not because the business case was weak, but because meetings were poorly structured, inadequately documented or handled without sufficient preparation.

A structured checklist and clear meeting framework help ensure consultation is meaningful, consistent and defensible.

1. Employer Redundancy Consultation Meeting Checklist

Before holding a redundancy consultation meeting, employers should ensure that the following are in place:

Business rationale

• Clear written explanation of why redundancies are proposed
• Evidence supporting reduced requirement for work or restructuring

Proposed structure

• Current and proposed organisational charts
• Identification of roles at risk

Selection framework

• Defined selection pool
• Objective selection criteria
• Weightings and scoring methodology
• Completed provisional scoring sheets, if applicable

Redeployment planning

• List of current vacancies
• Criteria for suitable alternative employment
• Process for considering redeployment

Process documentation

• At-risk letters and consultation invitations
• Consultation timetable
• Note-taking template
• Draft documentation for process communications, such as a redundancy letter

Having this material prepared ensures the employer can respond to questions transparently and consistently.

2. Employee Preparation Checklist

Employees may benefit from guidance on how to prepare for a consultation meeting. Common areas employees may wish to consider include:

• Clarifying their understanding of their role and responsibilities
• Identifying any inaccuracies in the proposed selection pool
• Reviewing performance evidence relevant to scoring
• Highlighting disability-related absences or maternity leave that may affect scoring
• Identifying alternative roles within the organisation
• Preparing questions about notice, redundancy pay and timelines

Encouraging employees to prepare supports meaningful engagement and reduces later disputes about procedural fairness.

3. Redundancy Consultation Meeting Script (Manager Framework)

Managers should avoid informal or improvised approaches. While each situation differs, a structured framework can assist.

Opening the meeting

• Confirm that the meeting is part of a consultation process
• Emphasise that no final decision has been made
• Explain the purpose of the discussion

Explaining the proposal

• Outline the business rationale
• Describe the proposed selection pool
• Explain selection criteria and scoring approach
• Confirm proposed timetable

Inviting representations

• Ask whether the employee believes the pool is appropriate
• Invite feedback on selection criteria
• Ask whether there are alternatives to redundancy
• Explore interest in redeployment or voluntary redundancy

Closing the meeting

• Confirm next steps
• Provide timeframe for follow-up
• Confirm that notes will be circulated

The language used should reflect that redundancy is a proposal under consultation, not a finalised outcome.

4. Following Up After the Meeting

Consultation does not end when the meeting closes.

Employers should:

• Circulate meeting notes promptly
• Consider representations carefully
• Review scoring if challenged
• Check for new redeployment opportunities
• Document reasons for accepting or rejecting suggestions

If adjustments are made to scoring or the selection pool, this should be clearly recorded and explained.

Failure to respond to employee representations is a frequent basis for unfair dismissal findings.

5. Common Errors in Consultation Meetings

Even well-intentioned employers can undermine the fairness of the process. Common mistakes include:

• Presenting redundancy as inevitable
• Refusing to reconsider scoring
• Failing to explain why suggestions were rejected
• Ignoring discrimination risks
• Failing to document discussions
• Conducting consultation too quickly

Tribunals assess whether consultation was genuine, not whether it was lengthy. A well-structured two-week consultation may be fair, while a poorly handled six-week process may not be.

Section Summary: A redundancy consultation meeting should be prepared, structured and documented. Employers should approach meetings with an open mind, provide relevant information and give employees a genuine opportunity to influence the outcome. Clear documentation and a consistent meeting framework significantly reduce legal risk and strengthen the employer’s position if the process is later challenged.

Section F: Do Employees Have to Work During the Redundancy Consultation Period?

A frequent practical question is whether employees must continue working during the redundancy consultation period. The short answer is that employment normally continues as usual unless the contract provides otherwise or the parties agree a variation.

Redundancy consultation does not suspend the employment relationship. Until dismissal takes effect, the employee remains employed and entitled to pay, and the employer remains entitled to require work.

1. The General Rule

During consultation:

• The employment contract continues to apply.
• The employee is normally required to attend work.
• The employer must continue to pay salary and contractual benefits.

Consultation meetings are part of the employment relationship and should usually take place during working hours.

Unless there is a contractual right to lay-off, short-time working or garden leave, the employer cannot unilaterally suspend work without pay.

2. Time Off to Look for Work or Training

Employees with at least two years’ continuous service who have been given notice of dismissal for redundancy are entitled to reasonable time off during working hours to:

• Look for new employment, or
• Arrange training for future employment.

This right arises once notice of redundancy dismissal has been given, not merely because consultation is underway.

Employers must allow reasonable time off and must pay for up to 40% of one week’s pay in respect of that time off.

Failure to permit this statutory right can result in a tribunal claim.

3. Time Off for Collective Consultation Representatives

In collective redundancy situations, employee representatives are entitled to:

• Reasonable paid time off to perform their representative functions
• Access to facilities to communicate with affected employees
• Paid time off for training where appropriate

This right applies both to recognised trade union representatives and to elected employee representatives.

Employers must not subject representatives to detriment for performing these functions.

4. Garden Leave, Lay-Off and Short-Time Working

Some employers consider removing employees from the workplace during consultation. This may be appropriate in certain circumstances, but it must be legally supported.

• Garden leave may be imposed only if there is a contractual right to do so.
• Lay-off or short-time working requires a contractual clause or employee agreement.
• Unilateral removal from work without pay may constitute breach of contract or unlawful deduction from wages.

Employers should check contractual terms before making changes to working arrangements during consultation.

5. Sickness Absence During Consultation

Employees on sick leave must still be consulted.

Consultation may need to be adapted by:

• Holding meetings remotely
• Allowing written representations
• Adjusting timescales where appropriate

Where an employee has a disability under the Equality Act 2010, employers must consider reasonable adjustments during the consultation process.

Failure to consult properly with an absent employee can undermine procedural fairness.

6. Emotional and Workplace Considerations

While employees normally continue working during consultation, employers should consider the potential impact on morale and productivity.

Best practice may include:

• Allowing flexibility where possible
• Avoiding unnecessary public announcements
• Providing access to support services
• Managing confidentiality carefully

Although these steps are not statutory requirements, they can reduce reputational and employee relations risks.

Section Summary: Employees generally continue working during the redundancy consultation period unless their contract or an agreement provides otherwise. Employees under notice of redundancy with two years’ service have a statutory right to reasonable paid time off to look for work or arrange training. In collective consultation cases, employee representatives are entitled to paid time off to perform their functions. Employers should check contractual terms before imposing garden leave or lay-off and should adapt consultation appropriately where employees are absent or disabled.

Section G: Collective Redundancy and Protective Awards

Where 20 or more employees are proposed to be dismissed as redundant within a 90-day period at one establishment, the legal risk increases significantly. In addition to unfair dismissal claims, employers face exposure to protective awards for failure to comply with collective consultation obligations.

Collective redundancy law is procedural and technical. Errors are often systemic, meaning that one mistake can affect every impacted employee.

1. Who Must Be Consulted?

Under the Trade Union and Labour Relations (Consolidation) Act 1992, employers must consult with “appropriate representatives”.

This means:

• A recognised trade union, where one exists for the affected category of employees, or
• Elected employee representatives, where no recognised union is in place.

If employee representatives need to be elected, the employer must arrange a fair election process before consultation begins.

Consultation must be with representatives, not solely with individual employees. However, individual consultation should still take place in parallel.

2. What Information Must Be Provided?

Employers must provide certain prescribed information in writing to representatives, including:

• The reasons for the proposed redundancies
• The number and descriptions of employees it is proposed to dismiss
• The total number of employees of those descriptions employed at the establishment
• The proposed method of selecting employees for dismissal
• The proposed method of carrying out dismissals, including timing
• The proposed method of calculating redundancy payments
• The number of agency workers engaged, where they are working and the type of work they perform

This information must be provided in good time and sufficiently early to allow meaningful consultation.

Failure to provide complete and accurate written information is a common compliance failure.

3. Consultation “With a View to Reaching Agreement”

Collective consultation must be undertaken with a view to reaching agreement.

This does not require the employer to concede to proposals. However, it does require:

• Genuine engagement
• Consideration of counter-proposals
• Open discussion about ways to avoid or reduce redundancies
• Exploration of mitigating consequences

Consultation must cover:

• Avoiding dismissals
• Reducing the number of dismissals
• Mitigating the consequences of dismissals

If consultation focuses only on implementation, rather than on whether redundancies can be avoided, it may be defective.

4. Protective Awards

If an employer fails to comply with collective consultation obligations, affected employees may bring a claim for a protective award.

A protective award can be:

• Up to 90 days’ gross pay per affected employee, and
• Awarded on a “just and equitable” basis depending on the seriousness of the breach.

The award is not limited to actual financial loss. It is punitive in nature and designed to sanction non-compliance.

Where consultation is wholly absent, tribunals often award the maximum 90 days.

Because protective awards apply per employee, financial exposure in large-scale redundancies can be substantial.

5. Notification to the Secretary of State (HR1)

In collective redundancy situations, employers must also notify the Secretary of State using Form HR1.

Notification must be given:

• At least 30 days before the first dismissal takes effect (20–99 redundancies), or
• At least 45 days before the first dismissal takes effect (100+ redundancies).

Failure to notify is a criminal offence and may result in an unlimited fine. Liability may extend to directors or senior officers where the failure is attributable to their consent, connivance or neglect.

The HR1 obligation is separate from consultation duties. Compliance with one does not automatically ensure compliance with the other.

6. Interaction with Individual Unfair Dismissal Claims

Even where collective consultation has been conducted, individual employees may still bring unfair dismissal claims if:

• Their individual consultation was inadequate
• The selection process was unfair
• Discrimination occurred
• Suitable alternative employment was not properly considered

Collective consultation does not replace individual fairness obligations.

Employers must ensure both regimes are satisfied.

Section Summary: Collective redundancy consultation applies where 20 or more redundancies are proposed within 90 days at one establishment. Employers must consult appropriate representatives, provide prescribed information in writing and begin consultation in good time and at least 30 or 45 days before the first dismissal takes effect. Failure to comply can lead to protective awards of up to 90 days’ gross pay per employee, as well as potential criminal liability for failure to file HR1. Collective consultation obligations operate alongside individual unfair dismissal principles. Both must be satisfied to minimise legal risk.

Section H: Common Pitfalls and Tribunal Risks

Most redundancy dismissals fail not because the business lacked a genuine redundancy situation, but because the process was mishandled. Tribunals place heavy emphasis on procedural fairness. Even where redundancies are commercially unavoidable, poor consultation can result in unfair dismissal findings or protective awards.

Understanding common pitfalls allows employers to prioritise risk controls before consultation begins.

1. Pre-Determined Outcomes

One of the most frequent tribunal criticisms is that the employer had already decided who would be dismissed before consultation started.

Indicators of a pre-determined outcome include:

• Announcing that redundancies “will happen” rather than that they are proposed
• Finalised scoring sheets before consultation
• Refusal to revisit selection criteria
• Ignoring representations

Consultation must be capable of influencing the decision. If no real possibility of change exists, the process may be unlawful.

2. Incorrect Selection Pool

Defining the correct selection pool is often contentious.

Common errors include:

• Limiting the pool to a single employee when comparable roles exist
• Failing to include employees performing similar duties
• Designing pools around individuals rather than roles

Employers must be able to justify why a particular pool was chosen. While there is no single correct pool, the decision must fall within a range of reasonable responses.

Failure at the pooling stage can undermine the entire process. Employers should also be alert to “bumping”, where another employee is displaced so that a different employee can be retained. Where relevant, bumping should be considered as part of a fair approach to selection.

3. Unfair or Discriminatory Selection Criteria

Selection criteria must be objective, measurable and non-discriminatory.

High-risk criteria include:

• Attendance records without adjusting for disability-related absence
• Flexibility requirements disadvantaging part-time workers
• Length of service criteria that disproportionately impact younger employees
• Performance scoring unsupported by documented evidence

Employers must consider obligations under the Equality Act 2010. Indirect discrimination claims often arise from scoring exercises rather than the redundancy decision itself. Redundancy selection decisions can also give rise to maternity discrimination risks where pregnancy, maternity leave or return-to-work arrangements are mishandled.

Where the risk profile is elevated, employers should also be aware of exposures linked to discrimination risks and the distinction between lawful positive action and unlawful discriminatory decision-making.

4. Failure to Consider Suitable Alternative Employment

Employers have a duty to consider whether suitable alternative employment is available within the organisation or associated companies.

Failings commonly include:

• Not circulating vacancy lists
• Requiring employees to compete unnecessarily for roles
• Failing to offer trial periods
• Dismissing before exploring redeployment

A suitable alternative role does not have to be identical, but it must be reasonable in terms of status, pay, location and responsibilities. Where an alternative role is offered, employers should factor in the statutory four-week trial period framework, where applicable, as part of a compliant redeployment approach.

A specific high-risk area is maternity leave. Employees on maternity leave may have priority rights to be offered suitable alternative vacancies where redundancy arises, and employers should treat this as a distinct compliance requirement, not simply a best practice expectation.

5. Rushed or Superficial Consultation

Employers sometimes attempt to complete consultation quickly to reduce uncertainty. However, speed cannot replace substance.

Tribunals may scrutinise:

• Whether employees were given adequate time to respond
• Whether representations were genuinely considered
• Whether meetings were spaced appropriately
• Whether documentation was shared in advance

A short but thorough consultation can be fair. A longer process that ignores employee input may not be.

6. Poor Documentation

In tribunal proceedings, the employer must demonstrate that consultation was meaningful.

Common documentation failures include:

• No written notes of meetings
• Inconsistent scoring explanations
• Missing written responses to employee representations
• Lack of evidence that alternatives were considered

Contemporaneous records carry significant weight. Where documentation is weak, tribunals may prefer the employee’s account.

7. Ignoring Appeal Rights

Although not a statutory requirement specific to redundancy, offering a right of appeal strengthens procedural fairness.

Failure to provide an appeal may contribute to a finding of unfair dismissal, particularly where the employee has raised substantive concerns during consultation.

An appeal allows:

• Review of scoring
• Reconsideration of pool decisions
• Correction of procedural errors

It can also mitigate compensation if handled properly.

8. Artificially Avoiding Collective Thresholds

Employers must not manipulate timing or structuring of redundancies to avoid the 20-employee threshold.

Tribunals may examine:

• Whether dismissals were staggered deliberately
• Whether multiple sites were treated artificially as separate establishments
• Whether proposals were part of a broader redundancy programme

Attempts to circumvent collective consultation obligations can lead to protective awards.

Section Summary: The most common redundancy consultation failures arise from predetermined decisions, flawed selection pools, discriminatory criteria and superficial engagement. Documentation weaknesses and failure to consider alternatives frequently undermine otherwise legitimate business restructures. Employers who approach consultation as a genuine decision-making process, rather than an administrative formality, significantly reduce tribunal risk.

Section I: Conclusion and Employer Action Points

Redundancy consultation is not simply a procedural step. It is a legal safeguard that determines whether a redundancy dismissal will withstand tribunal scrutiny.

For individual redundancies, consultation forms part of the fairness assessment under the Employment Rights Act 1996. For collective redundancies involving 20 or more employees within 90 days at one establishment, statutory consultation duties arise under the Trade Union and Labour Relations (Consolidation) Act 1992. Failure to comply may result in protective awards of up to 90 days’ gross pay per affected employee, in addition to potential unfair dismissal liability.

The central legal test is whether consultation was meaningful. Employers must be able to demonstrate that:

• Redundancy was genuinely proposed, not predetermined
• The selection pool was reasonable
• Objective, non-discriminatory criteria were used, supported by evidence
• Employees had a real opportunity to influence the decision
• Suitable alternative employment was properly considered, including trial period rules where relevant
• Collective consultation, where required, began in good time and met the minimum 30 or 45 day period
• HR1 notification duties were met in collective cases
• The process was documented carefully and consistently

Meeting statutory minimum periods alone does not guarantee fairness. Tribunals examine substance over form. Employers should also consider whether a negotiated exit may be appropriate in some cases, for example using a settlement agreement, but only where this supports a lawful strategy and does not undermine consultation obligations.

Section Summary: A fair redundancy outcome depends on the integrity of consultation. Employers should treat consultation as a genuine decision-making stage, not a fixed process to complete. Where collective obligations apply, compliance failures can create organisation-wide exposure through protective awards and HR1 enforcement risk.

Section J: Redundancy Consultation FAQs

What is redundancy consultation?
Redundancy consultation is the process by which an employer engages with employees who are at risk of redundancy before any final dismissal decision is made. It involves explaining the proposal, seeking feedback and considering alternatives.

How long is the redundancy consultation period?
Where 20–99 redundancies are proposed within 90 days at one establishment, consultation must begin in good time and at least 30 days before the first dismissal takes effect. Where 100 or more redundancies are proposed, the minimum period is 45 days. For fewer than 20 redundancies, there is no statutory minimum, but consultation must be meaningful and fair.

What is the redundancy consultation period for 1 person?
There is no fixed statutory minimum period where only one employee is affected. The consultation must be reasonable in the circumstances and give the employee a genuine opportunity to respond and explore alternatives.

What happens at a redundancy consultation meeting?
The employer explains the business rationale, outlines the selection pool and criteria, discusses potential alternatives and invites representations. The employee may challenge scoring, raise concerns or propose redeployment options.

What happens at a second redundancy consultation meeting?
A second meeting typically reviews the employee’s provisional selection score, addresses representations and confirms whether dismissal remains a proposal.

Do employees have to work during the redundancy consultation period?
Yes, employment generally continues as normal during consultation. Employees under notice of redundancy with at least two years’ service are entitled to reasonable paid time off to look for work or arrange training.

What is collective redundancy consultation?
Collective consultation applies where 20 or more redundancies are proposed within 90 days at one establishment. Employers must consult appropriate representatives and begin consultation in good time and at least 30 or 45 days before the first dismissal takes effect.

What happens if an employer fails to consult properly?
Employees may bring unfair dismissal claims. In collective redundancy cases, tribunals may award a protective award of up to 90 days’ gross pay per employee.

Can redundancy consultation prevent dismissal?
Consultation may result in alternatives such as redeployment, voluntary redundancy or restructuring changes. However, employers are not required to reach agreement, only to consult meaningfully.

Section K: Glossary

Section L: Useful Links