Will the penalties for failing to consult properly increase?

Yes. The Act increases the penalties that can be imposed on employers who fail to comply with their collective consultation obligations during redundancy exercises.

Where an employer fails to consult appropriately before making collective redundancies, an employment tribunal can make a protective award in favour of affected employees. Under the Act, the maximum protective award has increased from 90 days' pay to 180 days' pay per affected employee.

The increase is intended to encourage employers to engage meaningfully with workers and their representatives and to ensure that consultation is treated as a genuine process rather than a procedural formality.

What this means for union reps

• Employers face much greater financial risk if they fail to carry out proper collective consultation.
• The increased penalty may strengthen the position of unions and employee representatives when seeking meaningful engagement from employers.
• Reps should ensure consultation begins early, that sufficient information is provided, and that alternatives to redundancy are properly considered.
• Where an employer appears to be bypassing or undermining the consultation process, reps should seek advice from their union as soon as possible.