What changes are being made to redundancy consultation requirements?

The Act increases the consequences for employers that fail to comply with collective redundancy consultation and provides for a future organisation-wide consultation trigger.

Employers must currently consult collectively where they propose 20 or more redundancies at one establishment within a 90-day period. During 2027, the Act is due to introduce an additional organisation-wide trigger, so collective consultation may also be required where redundancies across the whole organisation reach a threshold set by regulations, even if fewer than 20 are proposed at any one establishment.

The Act also increases the maximum protective award that an employment tribunal can order where an employer fails to comply with collective consultation requirements. Since April 2026, the maximum award has doubled from 90 days' pay to 180 days' pay per affected employee.

These changes are intended to ensure that employers engage meaningfully with workers and their representatives before making large-scale redundancies, particularly in organisations operating across multiple sites.

What this means for union reps

• More redundancy exercises may trigger collective consultation, particularly in organisations with multiple workplaces or sites.
• Employers face significantly greater financial penalties if they fail to consult properly, which may strengthen the position of unions and employee representatives during redundancy discussions.
• Reps should expect to be involved at an early stage in redundancy proposals and should ensure consultation is meaningful, with employers providing sufficient information and considering alternatives to redundancy.
• Where collective consultation obligations apply, reps can play a crucial role in scrutinising employer proposals, challenging assumptions and helping members understand their rights throughout the process.