Forthcoming reforms aim to modernise the process in response to the higher percentage of employees working from home, Sarah Jackman reports
From April 2026, the maximum protective award for failure to comply with the requirements of collective redundancy consultation will increase from 90 to 180 days’ gross pay per affected employee.
The reforms aim to align the law with the realities of today's working world, but questions remain over whether they really reflect the trend for remote working and if the right areas are being prioritised.
The current collective redundancy rules have their roots in the 1970s, when home working was virtually unheard of. The key concept underpinning the legislation – namely the ‘establishment’ of where an employee works – has become increasingly strained in an era of hybrid and fully remote work.
Traditionally, establishment has meant the unit to which employees are assigned, typically an office, factory or store. However, for remote employees who may live hundreds of miles from their employer’s registered office, it is unsurprising that employment law and HR professionals are pondering whether that concept still makes sense.
To date, UK courts have not tested how remote workers fit into the definition of establishment. What is clear is that the law was not written with them in mind. For redundancies affecting a fully remote workforce, tribunals are unlikely to find that each employee has their own separate establishment,...
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