Legal and accounting support for UK businesses and individuals
office@yudey.uk
Employer advice and HR processes guides · 6 min read

Planning a redundancy consultation

A redundancy consultation plan should begin before the business commits to dismissals.

Jurisdiction: Great Britain — Northern Ireland has separate employment law.

A redundancy consultation plan should begin before the business commits to dismissals. Identify the proposed reduction, affected employees and timetable, then assess both individual fairness and any collective consultation and notification duties. [1]

Establish the proposal and affected group

Record the business rationale, roles affected and alternatives considered. Check the number and timing of proposed redundancies under the rules currently in force, including connected proposals. Do not split a programme into artificial stages to avoid obligations.

Identify recognised unions or the need for appropriate employee representatives. Build in time for any required election and for representatives to understand the proposal. An announcement of a final decision is not meaningful consultation.

Give consultation room to change the outcome

Prepare information on selection, alternatives, redeployment and proposed payments. Record suggestions and explain the response to them. Keep legal minimum timing distinct from the practical time needed for a genuine process.

Coordinate selection-pool advice with vacancy searches and individual meetings. Employee preparation illustrates the questions consultation should be able to answer. Obtain advice on current commencement rules and required government notification before issuing dismissal notices; announced reforms should not be treated as though they all operate already.

Record the business proposal before announcing outcomes Describe the work requirement that may reduce and the options the business is considering. Keep the financial or operational evidence supporting the proposal, including alternatives already examined. Distinguish a provisional plan from an irrevocable decision to dismiss named people. Consultation must have a meaningful opportunity to influence the outcome. If a board paper uses definitive language while staff are told no decision has been made, resolve that inconsistency honestly rather than relying on carefully worded letters to conceal a completed decision.

Identify affected roles and related proposals across the relevant period. Ask who is coordinating changes in other teams or locations so the legal assessment uses the whole programme. Do not divide a planned reduction into artificial stages to avoid obligations. Acas explains when collective consultation is required under the current rules. [1] Establish the relevant establishment, number of proposed dismissals and timing with advice where necessary. Future reforms should be tracked separately from the rules applying to the programme now being planned.

Build representative and notification requirements into the timetable Check whether a recognised union represents affected employees or whether appropriate representatives must be elected. Allow time for the relevant process and for representatives to understand the information. Identify how employees absent on leave or working remotely will be included. A meeting invitation sent only to those currently on site may miss people whose roles are affected. Confirm what information must be provided, when consultation must begin and any government notification requirement before setting dismissal dates or making promises about when the programme will finish.

Distinguish statutory minimum periods from the time needed for a meaningful exercise in the particular business. Complex alternatives, several locations or incomplete information may require further discussion. Assign responsibility for notices and retain evidence of submission where required. The consequences of failing collective consultation duties changed in April 2026, when the maximum protective award increased to 180 days' pay. [2] That reinforces the need for a properly assessed process, but the plan should be based on the duties and facts rather than treating a potential award as a budgeted substitute for consultation.

Prepare information that allows informed alternatives Explain the proposed structure, selection approach, possible vacancies and payment calculations at an appropriate level of detail. Provide representatives and individuals with information needed to understand and challenge the proposal while handling personal data proportionately. If information is provisional, state the limitation and when it will be updated. A consultation cannot work well where a key cost assumption is withheld without explanation or where staff are asked for alternatives before they know what work the business intends to retain.

Create a method for logging suggestions and giving reasoned responses. Assess redeployment, retraining, reduced hours or other options against the actual business needs. Keep the analysis, including why a proposal is accepted, modified or rejected. Do not require employees to produce a fully costed alternative before considering a useful idea. Where a suggestion needs further information, identify who will obtain it and whether a decision should wait. The record should show genuine consideration rather than a standard rejection paragraph repeated against every option.

Coordinate individual selection with the wider process Consult on pool boundaries and criteria before applying them as fixed outcomes. Check evidence, moderation and protected circumstances, including relevant pregnancy, family leave and disability issues. Identify suitable alternative roles and any priority obligations that require specific handling. Keep individual meetings connected to representative consultation without assuming that one replaces the other. If new facts change the pool or proposal, explain the change and consider what further consultation is needed. Quietly changing criteria to obtain a preferred result undermines the usefulness of the entire record.

Before dismissal notices are issued, review outstanding questions, notification requirements and the decisions actually reached. Prepare written reasons, payment information and appeal arrangements, with clear responsibility for each step. If settlement discussions occur, keep them from predetermining the redundancy process or obscuring its continuing obligations. Retain the proposal, consultation record, alternatives and final decisions together. A sound programme should allow a reviewer to trace how the initial business concern became the eventual outcome and what employee input changed or clarified along the way.

Frequently asked questions

Can the business decide who will leave before starting consultation?

Consultation should address a genuine proposal with scope to influence the outcome. Selecting final dismissals first risks making the later process ineffective and unfair.

Why check related redundancy proposals in other teams?

Numbers, timing and the relevant establishment can affect collective duties. The assessment needs the actual programme rather than isolated fragments managed by separate teams.

Does observing a minimum consultation period prove the process was meaningful?

No. Employees and representatives need relevant information and genuine consideration of alternatives; elapsed time alone does not establish the quality or fairness of consultation.

What changed about protective awards in April 2026?

The maximum award for failure to comply with collective consultation duties increased to 180 days' pay. The applicable programme and duties still need individual assessment.

How should rejected employee alternatives be recorded?

Retain the proposal, information considered and specific reason for rejection, including any further enquiries, so the response shows substantive consideration rather than a standard dismissal.

Official sources

Sources checked: 9 September 2026. Check the linked guidance for subsequent changes.

  1. Acas: Collective redundancy consultation
  2. Acas: Employment Rights Act 2025 implementation

General information only. The appropriate action depends on your circumstances and the applicable jurisdiction.

Report a correction