2026 UK Employment Law Changes

Redundancy 2 min read

What is the protective award for collective redundancy failures?

Reviewed by David Thornton, Employment Law Specialist Last updated: 7 July 2026
Expert Answer

A protective award is compensation a tribunal can order when an employer fails to comply with its collective consultation obligations — that is, when proposing 20 or more redundancies at one establishment within 90 days without properly informing and consulting employee representatives.

The Award Doubled in April 2026

Under the Employment Rights Act 2025, the maximum protective award doubled from 90 days' pay to 180 days' pay per affected employee for failures on or after 6 April 2026. Crucially, a week's pay for these purposes is not capped at the statutory limit — it is based on actual pay.

For a business making 20 redundancies at an average salary of £30,000, maximum exposure has roughly doubled from around £145,000 to around £290,000.

When Collective Consultation Is Required

  • 20–99 proposed redundancies — consultation must begin at least 30 days before the first dismissal
  • 100+ proposed redundancies — consultation must begin at least 45 days before the first dismissal
  • HR1 form — you must also notify the Insolvency Service; failure is a criminal offence

How to Stay Compliant

  • Count proposed redundancies carefully — include dismissals for contract changes, not just headcount reductions
  • Elect or engage appropriate employee representatives early
  • Consult on ways to avoid dismissals, reduce numbers, and mitigate consequences — genuinely, with an open mind
  • Document every stage of the consultation

Redundancy process errors are now among the most expensive mistakes in UK employment law. Our redundancy management service handles the process end to end. Get advice before you announce anything.

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