Collective consultation involves discussing proposals with recognised trade unions or elected employee representatives before final decisions are made. Getting the process right can help employers manage change fairly, engage constructively with their workforce and reduce the risk of costly Employment Tribunal claims.
Employers planning significant restructuring should identify whether collective consultation is required at an early stage, as minimum consultation periods can affect the timetable for implementing changes.
When is collective consultation required?
Under the current rules in Great Britain, employers must collectively consult where they are proposing to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less.
The concept of an “establishment” can be important, particularly for businesses operating across several locations. It does not necessarily mean the organisation as a whole, so employers should take advice where it is unclear how the threshold applies.
Even where fewer than 20 redundancies are proposed, employers should still consult affected employees individually and follow a fair redundancy process.
Who should employers consult?
Where affected employees are represented by a recognised trade union, collective consultation should generally take place with appropriate trade union representatives.
Where there is no recognised union, employers will usually need to consult with elected employee representatives. Employees affected by the proposals should have an appropriate opportunity to elect those representatives.
Collective consultation does not necessarily replace individual consultation. Employers will normally still need to discuss the impact of the proposals with individual employees before reaching final dismissal decisions.
When should collective consultation start?
Consultation should begin while the redundancy proposals are still genuinely open to discussion and before final decisions have been made.
There are also minimum periods before the first proposed dismissal can take effect:
- For 20 to 99 proposed redundancies, consultation must begin at least 30 days before the first dismissal.
- For 100 or more proposed redundancies, consultation must begin at least 45 days before the first dismissal.
These are minimum periods rather than recommended consultation lengths. A complex restructuring may require longer.
Employers should therefore build consultation into their organisational change timetable from the outset rather than treating it as a process to complete shortly before redundancies take effect.
What should employers consult about?
Collective consultation must be genuine and carried out with a view to reaching agreement.
The process should consider ways to:
- Avoid the proposed dismissals
- Reduce the number of employees being dismissed
- Limit the consequences for affected employees.
This could involve discussing alternative structures, voluntary redundancy, reduced recruitment, redeployment, changes to working arrangements or other ways of reducing the impact of the proposals.
Employers do not have to reach agreement with representatives, but they should be able to demonstrate that proposals were genuinely considered and that consultation was meaningful.
What information must be provided?
Representatives need sufficient information to understand the proposals and take part meaningfully in consultation.
Employers must provide certain information in writing, including details of:
- The reasons for the proposed redundancies
- The number and categories of employees affected
- The numbers employed in those categories
- The proposed selection method
- How the redundancies will be carried out
- How redundancy payments will be calculated.
Providing clear information at an early stage can help representatives understand the business rationale and put forward meaningful alternatives.
Does the Government need to be notified?
Yes. Where collective redundancy obligations apply, employers must also notify the Government’s Redundancy Payments Service (RPS) using form HR1.
The notification must be made at least:
- 30 days before the first dismissal where 20 to 99 redundancies are proposed
- 45 days before the first dismissal where 100 or more are proposed.
Failing to notify the RPS can result in an unlimited fine, making this an important part of the redundancy planning process.
What are the risks of getting collective consultation wrong?
The financial consequences of failing to comply with collective consultation obligations can be significant.
From 6 April 2026, the maximum protective award an Employment Tribunal can make increased from 90 days’ pay to 180 days’ full pay for each affected employee.
With large-scale redundancies, the potential liability can therefore be substantial.
There may also be separate unfair dismissal claims where individual redundancy processes have not been handled fairly.
Does collective consultation apply to changing employment terms?
Collective consultation can also become relevant where an employer proposes to dismiss 20 or more employees and offer to re-engage them on different contractual terms.
This is sometimes referred to as dismissal and re-engagement or “fire and rehire”.
Where the statutory threshold is met, employers must follow the collective consultation requirements even where the proposed dismissals are connected with contractual changes rather than a traditional redundancy exercise.
Employers considering significant changes to terms and conditions should therefore obtain advice before implementing a strategy.
Are the collective consultation rules changing?
Employers should also be aware that further reforms are expected.
The Employment Rights Act 2025 provides for additional collective redundancy protections based on redundancies across an employer’s wider organisation, rather than relying solely on the existing establishment-based test. Government guidance indicates that further changes are expected in 2027.
Businesses planning significant workforce changes should therefore check the latest position before beginning a restructuring exercise.
Planning organisational change effectively
Collective consultation requires more than meeting a statutory timetable. Employers should have a clear business rationale, identify affected employees, engage representatives properly and remain open to alternatives before final decisions are made.
Starting the process early can provide greater flexibility and reduce the risk of procedural mistakes.
DTM Legal’s Employment & HR team advises employers on collective consultation, trade union matters, redundancies and organisational change, helping businesses plan and implement workforce changes while managing employment law risk.
If your business is considering a restructuring, collective redundancy exercise or significant changes to employment terms, contact DTM Legal’s Employment & HR team to discuss the consultation requirements and the best way to approach the process.