I’m planning to make redundancies: What are the new rules around collective consultation requirements?

9 April 2026

There might be some difficult decisions on the cards for businesses that are struggling to manage rising costs and wages.

We are seeing an increase in businesses having to make the tough call to make some of their employees redundant. In fact, according to a recent Freedom of Information request, 736 employers have filed for proposed redundancies in the first two months of 2026. This has put 56,396 jobs at risk of redundancy – up by nine per cent from the same period last year.

If you are faced with the potential of multiple redundancies, your collective consultation requirements may be triggered. The Employment Rights Act 2025 is raising the stakes on compliance with new collective consultation requirements.

When are my collective consultation requirements triggered?

If your business proposes 20 or more redundancies at a single establishment within 90 days, the obligation to collectively consult is triggered.

The consultation period is at least 30 days and increases to 45 days when 100 or more redundancies are proposed.

The requirements apply broadly to any ‘non-fault’ dismissal and not just traditional redundancies.

This means that voluntary redundancies and certain restructuring scenarios could be affected as well.

From 6 April 2026, the maximum protective award for failing to collectively consult will double from 90 days’ gross pay to 180 days’ gross pay per affected employee and this is uncapped.

How will these new rules affect me as an employer?

Protective awards, fines and even criminal liability for directors or managers can all arise if statutory consultation and HR1 notification duties are ignored.

Employers must also be aware that future changes are expected in 2027 and redundancies across the whole organisation will be considered.

How can I manage these new rules?

Now is the time to assess your redundancy processes across all sites, update policies and train managers on the new redundancy rules.

If you are unsure whether these requirements affect you, you should seek professional advice to prevent costly errors.

Our Employment Law team can review your proposed redundancies, assess whether collective consultation is triggered and help you carry out a consultation correctly.

We know that these decisions can feel hard enough and we don’t want you to feel any added pressure of getting it wrong or putting yourself at risk of a tribunal claim.

If you need further advice on staying compliant with your collective consultation requirements, get in touch.