What Is the Consultation Period for Redundancy?

Redundancy is one of the hardest decisions an employer can face, and how it’s handled matters just as much as the outcome regarding employee sentiment and legal repercussions. 

In the UK, taking part in a redundancy consultation process is a legal requirement for employers considering redundancies, but it’s not the easiest process to manage correctly and compliantly. Knowing how long consultation should take, what it involves, and how it differs from dismissal before commencing it is essential to ensure you approach redundancy fairly, lawfully, and with respect for those affected.

What Is Redundancy Consultation?

Employers can’t simply announce redundancies and move straight to dismissal; they must conduct a fair and genuine consultation with staff first. That means explaining why redundancies are being proposed, listening to employee feedback, and exploring whether there are other options, such as redeployment or changes to working patterns, before any final decision is taken.

Where larger numbers are involved, the rules go further. If 20 or more redundancies are planned within a 90-day period, the employer must hold a collective consultation with either a recognised trade union or elected employee representatives. In those cases, the law sets strict minimum timeframes: at least 30 days’ consultation for 20-99 roles at risk, and at least 45 days if 100 or more employees could be affected. Employers must also notify the government’s Redundancy Payments Service (RPS) before consultation begins.

Where a recognised trade union exists, the employer must consult with union representatives during a collective redundancy process. This isn’t optional: the law (s.188 of the Trade Union and Labour Relations (Consolidation) Act 1992) clarifies that unions have the right to receive information about the redundancies and engage in meaningful dialogue on behalf of their members. Employers must arrange elections for employee representatives if there is no recognised union.

What Is the Difference Between Redundancy Consultation and Dismissal?

Redundancy consultation and dismissal are closely linked, but they are not the same stage of the process.

Consultation is the period where redundancies are only proposals. Employers must explain the business reasons, share information about roles at risk, and give employees or their representatives the chance to respond. The law requires this consultation to be meaningful, so it can’t be a box-ticking exercise where decisions are already set in stone. These duties come from both case law on unfair dismissal and statutory rules in the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) for collective redundancies.

Dismissal is the point where the decision is final and an employee’s contract is formally terminated, in this case, on the grounds of redundancy. For it to be lawful, the dismissal must follow a fair process set out in the Employment Rights Act 1996. That means the employer must have completed meaningful consultation, applied fair and objective selection criteria (for example, skills, qualifications, or performance rather than personal bias), and considered whether suitable alternative employment exists elsewhere in the business. Even if redundancy is genuine, skipping these steps can make the dismissal unfair and open the door to tribunal claims for compensation.

In short, consultation is about dialogue and exploring options, while dismissal is the legal end of the employment relationship. If an employer skips or shortens consultation, the dismissal will likely be judged unfair, even if the business case for redundancy is genuine.

When is Redundancy Consultation Required?

Consultation is required whenever an employer is considering making a redundancy. It applies whether one role is at risk or hundreds are. The key legal test is whether a decision has already been made: consultation must start before redundancies are confirmed, while there is still scope to change the outcome.

Employers must consult on both the reasons for the proposed redundancies and the selection process, such as which roles are at risk, how staff will be chosen, and whether suitable alternatives exist. Even in small-scale cases, an individual consultation is legally required. For larger numbers, collective consultation rules kick in, which bring additional obligations and strict minimum timeframes. 

Skipping or rushing consultation risks unfair dismissal claims, protective awards for employees of up to 90 days’ gross pay (under s.189 TULRCA 1992), financial penalties for failing to notify the Redundancy Payments Service, and wider reputational damage. The cost of getting it wrong is often far higher than the time saved.

Legal Consultation Periods: How Long Does It Take?

The length of the consultation depends on the number of employees affected. UK law clearly distinguishes between collective and individual redundancies.

Collective Redundancies

Where 20 or more employees are at risk of redundancy within a 90-day period, collective consultation is mandatory. This means employers must consult with either a recognised trade union or elected employee representatives before any dismissals take effect.

• 20 to 99 redundancies: Consultation must last at least 30 days.
• 100+ redundancies: Consultation must last at least 45 days.

In both cases, employers are also legally required to notify the government’s Redundancy Payments Service (RPS) before consultation begins. Failure to comply can result in significant fines or protective awards for employees.

Individual Redundancies

Where fewer than 20 roles are affected, there is no fixed statutory timeframe for consultation. However, employers must still carry out a fair and meaningful process with each affected employee. This usually means at least one meeting, but in practice, it often involves several discussions to explain the reasons, explore alternatives, and consider employee feedback. The key is that consultation must be genuine and not rushed, with enough time for employees to respond before any decisions are made.

Step-by-Step: Redundancy Consultation Timeline

Every redundancy process follows three broad stages: preparation, consultation, and final decisions. The exact steps will depend on whether it is an individual or collective consultation, but the principles are the same: transparency, fairness, and genuine engagement with staff.

Pre-Consultation Preparation

Before consultation begins, employers should:

• Identify the business case for redundancies (financial pressures, restructuring, loss of contracts, etc).
• Define the roles at risk and the proposed selection criteria.
• Gather the required information. For collective redundancies, this includes details of affected employees, proposed selection methods, and redundancy payment calculations. Under s.188 of TULRCA 1992, this information must be provided to employee representatives.
• Engage with trade unions where recognised. If a union is in place, consultation must be carried out with union representatives. They have a legal right to receive all relevant information and to be involved in discussions from the outset. If no union is recognised, employee representatives must be elected instead.
• Notify the Redundancy Payments Service (RPS) if 20 or more redundancies are proposed within a 90-day period. The notification must be given before consultation starts.

This preparation ensures the employer can enter consultation with clear proposals rather than vague ideas, which is vital for demonstrating that the process is meaningful.

During Consultation

This is the stage where dialogue happens. Employers must:

• Meet with employees (or their representatives) to explain the reasons for redundancy proposals. Where a recognised trade union is in place, consultation must take place directly with union representatives. If no union exists, elected employee representatives will act instead.
• Provide full information about roles at risk, how selection will be carried out, and the proposed timetable.
• Listen to feedback and consider alternatives such as redeployment, voluntary redundancy, or reduced hours.
• Keep records of meetings and responses to show that consultation was genuine and not predetermined.

Post-Consultation

Once consultation has concluded and all feedback has been considered, employers may:

• Confirm decisions about which roles are redundant.
• Issue redundancy notices with appropriate contractual or statutory notice periods.
• Offer alternative employment where suitable vacancies exist. This must be considered before dismissal is final.
• Ensure redundancy pay is calculated correctly in line with statutory entitlements and any contractual enhancements.

At this stage, the focus shifts from consultation to dismissal. Employers should document how employee input was considered, as tribunals will expect evidence that consultation was genuine.

Managing Morale During the Consultation Period

How an employer handles communication and support during this period has a significant impact on morale and trust.

A few practical steps can make the process less damaging:

• Be transparent: Employees quickly lose confidence if they feel information is being withheld. Share as much as you can, as early as you can, while still being clear about what is and isn’t decided.
• Keep communication two-way: Consultation should be a dialogue, not a one-off announcement. Allow staff to ask questions, raise alternatives, and feel their views are genuinely heard.
• Support managers: Line managers often bear the brunt of employee concerns. Giving them clear guidance and training helps ensure messages are consistent and compassionate.
• Provide practical support: Offering access to career advice, counselling, or employee assistance programmes shows that the business recognises the personal impact of redundancy.
• Look after remaining staff: “Survivor syndrome” is common, and those who stay may feel anxious or demoralised. Address their concerns openly and outline how the business will move forward.

Handled well, consultation can soften the blow of redundancy. It won’t remove the difficulty of job losses, but it can maintain dignity for those leaving and a sense of stability for those staying.

Redundancy Consultation Mistakes to Avoid

Even well-intentioned employers can slip up during redundancy consultation. The law is strict, and missteps can turn a genuine business need into an unfair dismissal claim or a protective award. Some of the most common pitfalls include:

• Deciding before consulting: Consultation must take place before final decisions are made. If staff get the sense it’s a done deal, the process won’t be legally valid.
• Rushing the timeline: Failing to allow enough time for meaningful dialogue, especially in collective redundancies where statutory minimum periods apply (30 or 45 days).
• Not providing enough information: Employees and representatives need clear details about the reasons for redundancy, the roles affected, and the selection process. Vague explanations undermine trust and may breach legal requirements.
• Ignoring alternatives: Employers must genuinely consider options like redeployment, voluntary redundancy, or reduced hours. Dismissing suggestions out of hand can make the process look tokenistic.
• Inconsistent communication: Managers giving conflicting messages or failing to keep records of meetings can make it hard to prove consultation was fair.
• Overlooking individual consultation: Even where collective consultation is required, each employee still has the right to their own one-to-one discussions.

Frequently Asked Questions 

What Is the Minimum Consultation Period for Redundancy?

The minimum period depends on numbers. For 20-99 redundancies within 90 days, the consultation must last at least 30 days. For 100 or more, it’s 45 days. For fewer than 20, there’s no set timescale, but employers must still allow enough time for a meaningful individual consultation.

Can I Dismiss an Employee Immediately After Consultation Ends?

Yes, provided consultation has been genuine and complete. Once the required period has passed and employee feedback has been fairly considered, dismissal notices can be issued. However, rushing straight from consultation to dismissal without showing how input was addressed can make the process look unfair and risk legal challenge.

How Can I Prove My Consultation Process Was Meaningful?

Keep detailed records at every stage: the information provided, meetings held, employee suggestions, and how decisions were reached. Evidence that alternatives were considered, even if rejected, shows the process wasn’t predetermined. Tribunals will look for proof that consultation was genuine dialogue, not just a formality.

Redundancy Consultation Requires Fair Process for Compliance

Redundancy consultation is one of the most sensitive processes an employer will ever manage. A well-run consultation reduces the risk of claims, keeps morale steady, and protects the business’s reputation. If you’re facing a redundancy process and want to make sure it’s handled lawfully and fairly, our team can help. Contact Helix Law today.