Question

What happens at a redundancy consultation?

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A process an employer must follow before dismissing for redundancy — and consultation must be genuine and happen while proposals are still capable of being influenced, which is the requirement most frequently breached.

Collective consultation. Where 20 or more redundancies are proposed at one establishment within 90 days, the employer must consult representatives — a recognised trade union, or elected employee representatives where there is none.

Minimum periods apply before the first dismissal takes effect: 30 days for 20–99 redundancies, and 45 days for 100 or more. The employer must also notify the Secretary of State.

Consultation must cover ways of avoiding the dismissals, reducing the numbers, and mitigating the consequences — not merely how the redundancies will be implemented. An employer presenting a settled decision and discussing only its execution has not consulted.

Failure to consult collectively can result in a protective award of up to 90 days' pay per affected employee, which is a penalty for the failure and is not dependent on showing the outcome would have differed.

Individual consultation. Required regardless of numbers, for a fair dismissal. Typically involves an initial meeting explaining the situation, discussion of selection, and consideration of alternatives.

What makes a redundancy dismissal fair:

A genuine redundancy situation — business closure, workplace closure, or a reduced requirement for employees to do work of a particular kind.

A fair pool for selection, appropriately defined.

Objective selection criteria, applied fairly and evidenced. Criteria such as attendance require care, since disability-related absence must be discounted.

Meaningful consultation with each individual.

A genuine search for suitable alternative employment, including in associated employers.

Special protections. Employees on maternity, adoption or shared parental leave have enhanced rights to be offered suitable alternative vacancies in priority, and this protection has been extended to a period around pregnancy and return.

Statutory redundancy pay depends on age, length of service and weekly pay, subject to a cap, with two years' service required.

Suitable alternative employment carries a trial period, and unreasonably refusing a suitable offer can forfeit redundancy pay.

General information, not legal advice.

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