The redundancy consultation period explained: an employer’s guide

Redundancy is usually a last resort, and once you decide it is unavoidable, a proper consultation period must come before any dismissals. Consultation is a legal duty in many cases, and it gives employees the respect and the time to respond, question the process, and explore alternatives. This guide explains what the consultation period involves and the rules that apply. 

Consultation is both a legal duty and a matter of fairness. If you dismiss employees without proper consultation, the redundancies may be found unfair, and affected employees can bring a tribunal claim, which is costly and damaging to your reputation. For fewer than 20 redundancies there is no set collective procedure, but you must still consult individuals and follow a fair process, which our guide on how to make an employee redundant covers. For 20 or more at one establishment within 90 days, collective consultation rules apply. 

Collective consultation applies when you propose 20 or more redundancies at one establishment within a 90-day period. You consult recognised trade union or elected employee representatives about the proposals, the reasons, and how you will decide who stays and who goes. You must also consult genuinely on ways to avoid or reduce the redundancies and to lessen their impact, for example through redeployment or outplacement support. Consulting individuals instead of proper representatives is itself a breach, and consultation must happen while the proposals are still genuinely open. 

There is no maximum length, but there are legal minimums for collective consultation. For 20 to 99 redundancies, consultation must start at least 30 calendar days before the first dismissal. For 100 or more, it must start at least 45 days before. These are minimum periods for genuine consultation, not waiting periods, and issuing dismissal notices before they end cuts consultation short and creates legal risk. Clear redundancy communications throughout the period keep the process fair and reduce distress. 

Redundancies proposed	Consultation type	Minimum before first dismissal	Form HR1
Fewer than 20	Individual, fair process	No set minimum, but genuine	Not required
20 to 99	Collective	At least 30 days	Required (online)
100 or more	Collective	At least 45 days	Required (online)

Before consultation starts, you must notify the Insolvency Service in advance using form HR1, which has been submitted online since December 2025. This applies to collective redundancies of 20 or more, with the same 30 or 45-day lead times. Failing to notify is a criminal offence carrying an unlimited fine, and directors can be held personally liable, so this step is easy to overlook but serious to miss. Keep a copy of the submission with your records. 

The cost of getting collective consultation wrong has risen sharply. If a tribunal finds you failed to consult properly, it can make a protective award of up to 180 days’ gross pay for each affected employee, doubled from 90 days on 6 April 2026 under the Employment Rights Act 2025. The award uses actual pay, with no weekly cap, and applies per employee, so across a large workforce it adds up quickly. Getting the process and the timeline right is your protection. 

Consultation is difficult for everyone, and practical support eases it. Offering outplacement from the start helps affected employees reassess their skills and plan their next move, and shows you are handling redundancy responsibly. It also reduces the time pressure on people and can lower the risk of disputes. Explore the benefits of outplacement for what it includes. 

There is no maximum, but collective consultation has legal minimums: at least 30 calendar days before the first dismissal for 20 to 99 redundancies, and at least 45 days for 100 or more. Individual consultation has no set length but must be genuine and unhurried. 

There is no set collective procedure below 20, but you must still consult affected employees individually and follow a fair process. Skipping meaningful individual consultation can make a dismissal unfair. 

Form HR1 notifies the Insolvency Service in advance of collective redundancies of 20 or more, and has been submitted online since December 2025. Failing to file it before the first dismissal is a criminal offence carrying an unlimited fine. 

A protective award is compensation a tribunal can order when an employer fails to consult collectively. Since 6 April 2026 the maximum is 180 days’ gross pay per affected employee, with no weekly cap. 

This article is general guidance, not legal advice. Redundancy law is changing under the Employment Rights Act 2025, so check the current position with Acas or gov.uk and take advice from a qualified employment law professional before you act. 

A well-run consultation is easier with the right support in place. Careerminds helps organisations handle redundancy with dignity, giving departing employees coaching to move forward and easing the process for your team, backed by a 95% placement rate. Learn more about our outplacement support.