Collective consultation is a statutory obligation that arises when an employer proposes to dismiss 20 or more employees as redundant at one establishment within a 90-day period. The requirements are set out in the Trade Union and Labour Relations (Consolidation) Act 1992 and are in addition to individual consultation obligations.
When Does It Apply?
- 20-99 proposed redundancies at one establishment within 90 days — consultation must begin at least 30 days before the first dismissal
- 100+ proposed redundancies at one establishment within 90 days — consultation must begin at least 45 days before the first dismissal
The count includes all proposed dismissals by reason of redundancy — not just confirmed redundancies. "Establishment" generally means the specific site or location, though this has been the subject of significant case law.
Who Must Be Consulted?
Consultation must take place with appropriate representatives:
- If a recognised trade union exists, consultation must be with the union representatives
- If no union is recognised, the employer must arrange for the election of employee representatives
- Representatives must be given reasonable time off with pay to carry out their role
What Must Be Disclosed?
The employer must provide the representatives with written information including:
- The reasons for the proposed redundancies
- The numbers and descriptions of employees it is proposed to dismiss
- The total number of employees of that description at the establishment
- The proposed method of selecting employees for redundancy
- The proposed method of carrying out the dismissals, including the period over which they will take effect
- How redundancy pay will be calculated (if different from statutory)
What Must Be Consulted About?
Consultation must cover ways of:
- Avoiding the dismissals entirely
- Reducing the number of employees to be dismissed
- Mitigating the consequences of the dismissals (e.g., redeployment, retraining, outplacement support)
Government Notification
The employer must notify the Secretary of State using the HR1 form. This must be done at least 30 days before the first dismissal (or 45 days for 100+ redundancies). Failure to notify is a criminal offence.
Protective Award
If the employer fails to comply with collective consultation requirements, a tribunal can make a protective award of up to 90 days' gross pay per affected employee. For large-scale redundancies, this can amount to millions of pounds.
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