If an employer is proposing 20 or more redundancies within a 90-day period, it must undertake collective consultation. Failing to do so can result in a hefty penalty, which was increased on 6 April 2026 to 180 days' pay per dismissed employee (doubled from 90 days' pay). These penalties are uncapped and therefore can present significant potential liability for employers, in addition to the standard remedies for unfair dismissal and potential criminal liability for failing to notify the Secretary of State. It is therefore critical for employers to understand and comply with their collective consultation obligations.
The Employment Appeal Tribunal in Micro Focus Limited v Mildenhall has provided some clarity for employers in assessing when collective consultation obligations might be triggered. However, employers should also be prepared for upcoming amendments to the threshold tests to apply to 'organisation-wide' redundancies, and the proposed extension to required timeframes.
Collective consultation will be required where there are:
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