Redundancies can be daunting for businesses and individuals alike. Add in the concept of collective redundancies, and it can feel overwhelming. The Employment Rights Bill is set to introduce significant changes to collective redundancy rules, with some of the first reforms due to take effect in April 2026. This article outlines what’s changing – and how employers can prepare.
What is collective redundancy?
A collective redundancy arises when an employer proposes to dismiss 20 or more employees at one establishment within a 90-day period.
In such cases, employers have specific duties under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA):
- Consultation: Employers must consult with representatives of affected employees. Failure to do so can result in a protective award of up to 90 days’ pay per employee.
- Notification: Employers must notify the Secretary of State using Form HR1. Failure to notify is a criminal offence, punishable by an unlimited fine.
Practical tip: Employers should ensure they have robust internal processes for identifying when collective consultation obligations are triggered – especially where redundancies are being considered across multiple departments or sites.
What changes to collective redundancies are proposed under the Employment Rights Bill?
The Bill is set to make significant reforms to the employment law landscape, with changes phased in from April 2026 and into 2027 (for full details of the reforms see our central...
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