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Is your business considering making 20 or more redundancies? What you should know…

If a business is proposing to make 20 or more employees at one place of work redundant in a 90 day period, a collective redundancy consultation is triggered.

Consultation period:  An employer must consult with elected representatives of the employees for 30 days (45 days if 100 or more redundancies are proposed) before a notice of redundancy can be issued. 

Employee Representatives:    Collective consultation takes place with the elected representatives of the affected employees, not the employees themselves.  This could be a trade union or the employer should arrange for a secret ballot to take place for the employees to elect their representatives.  This is obviously extremely challenging during Covid-19 due to social distancing and with technology identifying people, difficulties around the ballot being secret.

Sanction:  Failure to consult collectively will entitle all employees to claim compensation of to 90 days’ pay per person.

Criminal Liability:  An employer must notify the government on Form HR1 about any proposed redundancies of more than 20 employees in a 90 day period.  Failure to do so is a criminal offence.  The timings are:

  • If between 20 and 99 employees are proposed to be dismissed, the form must be submitted at least 30 days before the first dismissals.
  • If 100 or more employees are proposed to be dismissed, the form must be submitted at least 45 days before the first of the dismissals.

At the end of collective consultation, individual consultation is required.  To avoid claims for unfair dismissal arising out a redundancy situation, it is essential that the correct redundancy processes are followed which include:

  • A genuine redundancy situation
  • Adequate warning and consultation with affected employees
  • A fair “pooling” and selection process
  • Consideration of alternative employment
  • A fair procedure

How we can help:

We are able to offer employers fixed fee HR support on a consultancy basis as and when you need it or for a fixed duration if required.  This support can be tailored to the specific needs of your business.

  • HR Audit: Recruitment, employment contracts, policies and procedures. 
  • Employment Advice Helpline:  Direct access to our specialist employment law solicitor.  If you need to double check something or are unsure how to go about an issue, contact Lisa Aitken on 07960 469988

Offering holistic and effective solutions to HR and employment law matters, we can provide support and guidance on day to day staff issues to more complex disputes.


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