By Team SalaryCalculate · 1/7/2026
Collective Consultation in Redundancy: Group Redundancy Procedures
When facing a large-scale redundancy situation, UK employment law requires employers to carry out a process known as a collective consultation. This involves discussions between the employer and representatives of the employees who may be affected. The goal is to find ways to avoid, reduce, or mitigate the impact of redundancies. This article will walk you through the process, obligations, and rights related to collective consultation in redundancy.
What is Collective Consultation?
Collective consultation is a mandatory process when an employer is considering making 20 or more employees redundant within 90 days or less. This process is outlined in the Trade Union and Labour Relations (Consolidation) Act 1992. The employer must consult collectively with elected employee representatives or trade union representatives, if a trade union is recognised in the workplace.
The Collective Consultation Process
The collective consultation should start as soon as possible and must take place before any final decisions are made. Here's a step-by-step guide to the process:
1. **Plan for consultation**: The employer should plan when and how the consultation will take place, including selecting the appropriate representatives.
2. **Provide written information**: The employer must give the representatives written details of the proposed redundancies. This should include the reasons for the redundancies, the number and categories of employees involved, the proposed method of selecting those who may be dismissed, the proposed method of carrying out the dismissals, and the method of calculating any redundancy payments.
3. **Hold consultation meetings**: Meetings should be held with the representatives to discuss the proposed redundancies. These discussions should aim to avoid, reduce, or mitigate the effects of the redundancies.
4. **Consider and respond to suggestions**: The employer should consider any suggestions made by the representatives and provide a response.
5. **Inform and consult individual employees**: After the collective consultation, the employer should hold individual consultations with each employee who is at risk of redundancy. This is a chance for the employee to ask questions and discuss their individual circumstances.
Timing of Collective Consultations
The length of the consultation period depends on the number of proposed redundancies:
For 20-99 redundancies, the consultation must start at least 30 days before the first dismissal.
For 100 or more redundancies, the consultation must start at least 45 days before the first dismissal.
Failure to Consult
Failure to consult can lead to a 'protective award'. This is a compensation awarded by an employment tribunal, which can be up to 90 days' gross pay for each affected employee.
Calculating Redundancy Payments
If redundancies cannot be avoided, employees may be entitled to statutory redundancy pay. The amount is based on the employee's age, weekly pay, and length of service. The maximum weekly pay cap is £719 (as of April 2025), and the maximum total payment is £21,570 (£719 × 20 years × 1.5). These limits are reviewed annually in April.
You can use our [redundancy pay calculator](/tools/uk/england/redundancy-pay-calculator) to estimate the amount of statutory redundancy pay.
FAQs
**What is collective consultation?**
Collective consultation is a process where employers must consult with representatives of employees when they are considering making 20 or more employees redundant within 90 days or less.
**When should collective consultation take place?**
The consultation should start as soon as possible and must take place before any final decisions are made. For 20-99 redundancies, it must start at least 30 days before the first dismissal. For 100 or more redundancies, it must start at least 45 days before the first dismissal.
**What happens if an employer fails to consult?**
Failure to consult can lead to a 'protective award', which is a compensation awarded by an employment tribunal. This can be up to 90 days' gross pay for each affected employee.
Conclusion
In a redundancy situation, employers have a legal obligation to consult with employee representatives. This process, known as collective consultation, is designed to avoid, reduce, or mitigate the impact of redundancies. It's essential for both employers and employees to understand their rights and obligations in this process.
For more information on the redundancy consultation process, check our guide on the [redundancy-consultation-process](/blog/redundancy-consultation-process). If you're facing redundancy, you may also find our [redundancy settlement calculator](/tools/uk/england/redundancy-settlement-calculator) helpful.
