Collective Redundancy: Doubling of Award for Failure to Consult 

In a significant update to UK employment law the government has announced that, from April 2026, employees affected by collective redundancies will be entitled to double the statutory redundancy award if employers fail to properly consult. This change forms part of wider reforms under the Employment Rights Bill and will have important implications for how organisations plan and execute redundancy processes.

What is the current legislation, and how is it changing?

Employers are required to consult with employee representatives during collective redundancies. Failing to do so can result in a protective award of up to 90 days’ pay per affected employee. From April 2026, however, this amount will double to 180 days’ pay, substantially increasing the financial risk for organisations that do not comply.

What does that mean for my business?
The doubling of protective awards makes it more critical than ever for employers to plan redundancies carefully and follow statutory consultation obligations. Non-compliance could result in significant costs and reputational damage.  

What can I do to prepare?
Employers will need to ensure their redundancy processes are fully compliant. Key areas to focus on include:

• Early engagement: start consultation discussions with employee representatives as soon as possible. Ensure that you provide complete information about the proposed redundancies, including numbers, roles, and criteria.
• Transparent selection criteria: clearly define and communicate the criteria for selecting employees for redundancy. This ensures fairness and reduces the risk of claims.
• Thorough documentation: keep detailed records of all consultation meetings, correspondence, and feedback. This creates evidence that due process was followed.
• Legal compliance: review statutory timelines and requirements for consultation to ensure full compliance with the law.
• Managing employee communication: clear and transparent communication is key. Employers should hold regular meetings with employee representatives and affected staff, and provide clear written information about the grounds for redundancies, timelines, and support measures.

We are not planning any redundancies; do I still need to prepare?
Even before a redundancy situation arises, organisations that anticipate potential future redundancies will benefit from preparing early. Engaging with your HR Advisor as soon as possible ensures you have the right guidance to manage the process efficiently and minimise financial and legal risks. Areas to review proactively include:

• Redundancy consultation policies and procedures
• Communication templates for employees and representatives
• Selection criteria and documentation processes

How can Stallard Kane help?
By April 2026, employers are expected to be operating under these higher standards. Our HR Advisory team is already reviewing policies, procedures, and training materials to ensure full compliance. You can expect a comprehensive suite of updated documentation and guidance throughout 2025, which will be supported by detailed HR audits and manager briefings.

Preparing early allows your business to embed best practices, train managers effectively, and ensure that when the law changes, you are not only compliant but confident in managing collective redundancies fairly and transparently.

In the meantime, if you have any questions or require further guidance, please contact your designated HR Advisor. We are here to help.

Take the next step in protecting your business and employees. Please don’t hesitate to contact your designated HR Advisor, we're here to help. For guidance, speak to your HR Advisor: hr@skaltd.co.uk | 01427 402 403

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