In the UK, when 20 or more employees are made redundant within 90 days, strict rules under employment law apply to protect staff and ensure employers follow a fair redundancy process. This article explains what collective redundancy is, outlines employer duties, and sets out the specific rights employees can expect when group layoffs are proposed.
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What Is a Collective Redundancy?
In UK law, a collective redundancy or group layoff arises when an organisation intends to make 20 or more staff members redundant within a 90-day window at a single workplace.
The rules are contained in the Employment Rights Act 1996 and the Trade Union and Labour Relations Act 1992, with notable reforms proposed under the Employment Rights Bill currently before Parliament.
Unlike individual redundancies, where only a small number of roles are affected, collective redundancies usually arise from wider changes in business needs.
Common reasons include large-scale restructuring, a downturn in trade, site closures, or outsourcing functions. In such situations, employers must follow a statutory process designed to protect employees’ rights.
By law, employers must start a collective consultation with either elected employee representatives or an accredited trade union before any redundancies are confirmed. The purpose of this consultation is to explain the reasons for redundancy, explore alternatives to job losses, and discuss fair selection criteria.
Employers must also inform the Secretary of State via form HR1 when collective redundancies are proposed.
Get to know more about: What Is Redundancy and When Is It Legal in the UK?
Employer Duties in Collective Redundancies
When proposing a collective redundancy, an employer must comply with strict statutory requirements. Not complying with these duties can leave employers open to protective awards, employment tribunal cases, and serious harm to their reputation.
Collective Consultation Requirement
Employers are obliged to consult with a recognised trade union or chosen employee representatives. This consultation must start:
- A minimum of 30 days before the initial redundancy if between 20 and 99 staff are involved.
- At least 45 days in advance if 100 or more workers are affected.
From 2027, these timeframes may increase to 60 and 90 days.
The consultation must be genuine, meaning employers may not simply announce decisions already made. Instead, they must provide information, consider alternatives, and discuss ways to reduce the number of redundancies or limit their impact.
Information to Be Shared
Employers must provide documented details to employee representatives covering:
- The grounds for redundancy.
- The number and categories of employees at risk.
- The proposed selection criteria and process.
- The method of calculating redundancy pay.
- The expected timeframe for dismissals.
Notification to the Secretary of State
In addition to consulting employees, the employer must notify the Secretary of State via form HR1. This legal requirement applies to all collective redundancies and ensures government oversight of large-scale dismissals. Failure to notify can result in criminal liability and fines.
Fair Selection and Legal Compliance
Employers must ensure the redundancy process is based on fair selection criteria, using objective measures such as length of service, skills, or qualifications. Discrimination in the selection process, whether linked to age, sex, race, disability, or any other protected characteristic, may result in legal action for unfair dismissal or unlawful discrimination.
By law, the redundancy process must follow a fair procedure at every stage. Employers who fail to comply risk significant financial penalties and employment tribunal claims.
Upcoming Changes: From 2027, employers will need to comply with collective consultation for redundancies either at one establishment OR across their entire organization (dual threshold system).
Your Rights as an Employee During a Collective Redundancy
Employees affected by a collective redundancy have specific rights under UK employment law. These protections ensure that dismissals are carried out fairly, that redundancy pay is correctly calculated, and that individuals are given a proper opportunity to challenge unfair treatment.
Right to Collective Consultation
Every employee covered by the redundancy proposal is entitled to be represented during a collective consultation. You are entitled to be informed, either through a recognised trade union or chosen employee representatives, about:
- The reasons for redundancy
- The number of roles at risk
- The selection criteria being applied
- The method of calculating redundancy pay
- The expected timeframe for dismissals
Upcoming Changes: From 2027, you may also be covered by collective consultation if redundancies occur across the company as a whole, not just at your establishment.
Right to Fair Selection
The selection process must be based on objective and transparent criteria. Common factors include length of service, skills, qualifications, and performance. Employers must avoid discrimination based on protected characteristics such as age, gender, ethnicity, or disability.
Any redundancy decision based on protected characteristics could give rise to a discrimination claim or potential unfair dismissal claim.
Right to Redundancy Pay
If you are made redundant and meet the qualifying conditions, you are entitled to statutory redundancy pay. This is based on your length of service, weekly pay (capped at the statutory maximum), and your age at the time of dismissal.
In some cases, employers may offer enhanced redundancy pay or severance pay as part of a redundancy package. Redundancy pay in the UK is generally tax-free up to £30,000.
Right to Notice Periods
Redundant employees are entitled to statutory notice. This is calculated as at least one week for every full year of continuous service, capped at 12 weeks. Employers can require staff to work during this span or offer payment in lieu of notice instead.
Right to Alternative Employment and Support
Employers must consider offering suitable alternative employment where possible. If such a role is unreasonably refused by the employee, redundancy pay rights may be affected. In addition, many employers provide outplacement services to help staff find new roles.
Right to Legal Remedies
If an employer fails to consult, does not follow a fair selection process, or breaches collective consultation rules, employees may bring claims to an Employment Tribunal. Remedies can include a protective award of up to 90 days’ gross pay (soon increasing under new legislation) and compensation for unfair dismissal.
Recent & Upcoming Legal Changes
Collective redundancy law in the UK is not standing still. The recent Employment Rights Bill introduces major reforms that will affect both employers and employees over the next few years.
Expansion of the Consultation Threshold
Under the new legislation, a company-wide threshold will be added. This means redundancies spread across different sites may still trigger collective consultation requirements, bringing far more businesses within scope.
Higher Protective Awards
At present, if an employer fails to consult properly, employees can be awarded up to 90 days’ gross pay as a protective award. From April 2025, this maximum will double to 180 days’ pay per affected employee, creating a much stronger incentive for employers to comply with the statutory process.
Possible Extension of Consultation Periods
The government is also reviewing whether the current 45-day minimum consultation period for 100 or more redundancies is sufficient. Proposals are being considered to extend this to 90 days, which would significantly lengthen the timeframe for large-scale restructuring exercises.
Wider Employment Reforms Linked to Redundancy
Alongside collective redundancy changes, the Bill introduces measures that will have an indirect impact. From October 2025, the practice of “fire and rehire” will be tightly restricted, limiting the ability of employers to dismiss staff and re-engage them on less favourable terms.
A new Fair Work Agency is also expected to take on enforcement powers, increasing scrutiny of how redundancy processes are carried out.
For employees, these reforms strengthen rights during redundancy by increasing penalties for non-compliance and extending the circumstances in which consultation must take place.
For employers, the message is clear: any large-scale redundancy must be planned carefully, with early consultation and strict adherence to collective consultation rules to avoid costly tribunal claims and compensation orders.
For better understanding how redundancy procedure should be handled, read our latest article on this: How Employers Should Handle Redundancy Procedures
Let Our Experts Help You
If you are facing a collective redundancy or group layoff, you do not have to go through it alone. At Gulbenkian Andonian Solicitors, our employment law team can advise you on redundancy pay, notice periods, fair selection, and tribunal claims. We act quickly to protect your rights and challenge any unfair dismissal.
Contact us today for expert redundancy legal solicitors on collective redundancies and to discuss your options in confidence.
FAQs
During redundancy and collective consultation, you have the right to be informed of the grounds for redundancy, the selection measures, and the process being followed. You are entitled to representation, statutory redundancy pay if eligible, fair notice, and protection from unfair dismissal or discrimination throughout the redundancy process.
Employees have a legal right to receive statutory redundancy pay based on their length of service. The amount is calculated using age, weekly pay, and years worked, with a statutory minimum set by UK employment law.
The redundancy selection process must use fair, objective criteria such as skills, qualifications, performance, and length of service. Employers must avoid bias or discrimination, consult with employee representatives, and follow a transparent process to ensure employees are treated lawfully and fairly under UK employment law.
If you believe you were unfairly chosen for redundancy, you can raise a grievance with your employer or seek advice from a solicitor. Potential unfair dismissal claims can be pursued through an employment tribunal, highlighting the importance of a fair selection process.
If offered suitable alternative employment, review the role carefully to see if it matches your skills, pay, and conditions. Accepting may protect your income, but refusing a reasonable offer could affect redundancy pay. Seek legal advice if you are unsure about your rights or options.
Dr Bernard Andonian is the Co-Founder of Gulbenkian Andonian Solicitors and a leading authority in UK immigration, human rights, family and civil litigation law. With over 40 years of experience, he brings a wealth of legal knowledge and courtroom expertise. A former Judge and a recipient of a PhD in Law from the University of West London, Dr Andonian has served on the Law Society’s Immigration Law Panel, where he played a key role in shaping national legal standards. His name is featured in the Legal 500 Hall of Fame, recognising his consistent excellence and influence in the field. Known for his practical approach and deep understanding of immigration law, he is frequently consulted for commentary on policy changes and legal reform.