As the legislation from the Employment Rights Act (ERA) 2025 continues to roll out, one area of focus is further measures to ensure that the correct process for collective consultations is carried out by employers.
One of these changes has already been introduced as of 6th April 2026, with the maximum protective award for an employee increasing from 90 to 180 days’ pay where the employer has failed to consult accordingly.
The collective consultation process requires that an employer carry out a strict consultation process prior to any dismissals taking place.
This applies to instances where there are at least 20 redundancies expected within an individual workplace within 90 days, with the minimum length of the consultation period depending on the specific number of employees involved:
• For 20 to 99 redundancies within 90 days, there must be a minimum 30-day consultation period
• For 100 or more redundancies within 90 days, this increases to a minimum of 45 days
Additional changes expected in 2027 will lower the threshold required for collective consultations further, and the total number of redundancies will no longer apply to an individual workplace, but the whole organisation.
However, the Government is still working out the type of threshold and threshold number, with consultations around this due to close on 21st May 2026.
With these changes, employers must follow the collective consultation process appropriately.
This includes reviewing current redundancy policies and procedures and adhering to collective and individual consultation processes.
And, if redundancies are a potential, commencing consultation at the early stages of the process is crucial.
For practical guidance on collective consultation and what these changes mean for your business, contact Solutions for HR today.
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