Consultation is the cornerstone of a fair redundancy process. Failing to consult — or consulting inadequately — is one of the most common reasons redundancy dismissals are found to be unfair. The requirements differ depending on how many employees are being made redundant.
Individual Consultation
There is no statutory minimum period for individual consultation, but the process must be meaningful. This means:
- Consultation must begin while the proposals are still at a formative stage — not after the decision has already been made
- The employee must be given adequate time to consider the proposals and respond
- The employer must genuinely consider the employee's responses and any alternatives they suggest
- Multiple meetings may be needed — a single meeting is unlikely to constitute adequate consultation
In practice, individual consultation typically involves two to three meetings over a period of one to four weeks, depending on the complexity of the situation.
Collective Consultation
When an employer proposes to dismiss 20 or more employees at one establishment within a period of 90 days or less, additional statutory obligations apply:
30-Day Minimum
20 to 99 redundancies: Collective consultation must begin at least 30 days before the first dismissal takes effect.
45-Day Minimum
100 or more redundancies: Collective consultation must begin at least 45 days before the first dismissal takes effect.
What Collective Consultation Involves
- Consulting with appropriate employee representatives (trade union or elected representatives)
- Providing specified information in writing (the HR1 form)
- Notifying the Secretary of State (via the Redundancy Payments Service)
- Consulting about ways to avoid dismissals, reduce numbers, and mitigate consequences
Penalties for Non-Compliance
Failure to conduct proper collective consultation can result in a protective award of up to 90 days' gross pay per affected employee. This is in addition to any individual unfair dismissal claims.
Key Timing Tips
- Start consultation as early as possible — even before you've finalised the details
- Keep records of all consultation meetings
- Don't pre-determine the outcome — consultation must be genuine
- Remember that the statutory minimum periods are just that — minimums. More complex situations may require longer
Our redundancy management team can manage the entire consultation process on your behalf. Contact us for support.