When an employer proposes to make 20 or more employees redundant at one establishment within any 90-day period, additional legal obligations are triggered under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA). Failure to comply can result in a Protective Award of up to 90 days' pay per affected employee.
20 to 99 redundancies: Collective consultation must begin at least 30 days before the first dismissal takes effect.
100 or more redundancies: Collective consultation must begin at least 45 days before the first dismissal takes effect.
The clock starts when the employer first notifies employee representatives — not when individual letters are sent. Any dismissal before the minimum period ends is automatically unlawful.
You must notify the Secretary of State (via the Insolvency Service HR1 form) at the same time you begin collective consultation — before any redundancy notices are issued. The HR1 form must be submitted online at gov.uk. Failure to do so is a criminal offence carrying an unlimited fine.
Collective consultation must be conducted with recognised trade union representatives, or — where no union is recognised — with elected employee representatives. You cannot consult only with individual employees. The consultation must cover: ways of avoiding the dismissals; reducing the numbers affected; and mitigating the consequences. Consultation must be "with a view to reaching agreement" — it cannot be a rubber-stamping exercise.
You must provide representatives with written information including: the reasons for the proposed redundancies; the numbers and descriptions of employees affected; the proposed selection method; the procedure and timetable; and the method for calculating redundancy payments beyond the statutory minimum.
There is a limited defence for employers who cannot comply with the minimum periods due to "special circumstances" — such as sudden insolvency. However, courts interpret this defence narrowly. Financial difficulty alone is not sufficient.
If an Employment Tribunal finds that you failed to comply with collective consultation requirements, it can award each affected employee up to 90 days' gross pay as a Protective Award. With 100 employees each earning £30,000 per year, this could amount to a liability of over £750,000.