Redundancy Consultation Periods in the UK: Employer Essentials

If you’re facing a downturn, restructuring, or a site closure, redundancy may be on the table. It’s never easy - and the legal process can feel daunting - but getting the redundancy consultation period right is essential to stay compliant and treat your team fairly.

In this guide, we’ll break down the consultation period for redundancy under UK law, explain when the 30 or 45 day consultation period applies, and walk you through a simple step-by-step process. We’ll also answer common timing questions like whether the 45 day consultation period includes weekends, and what “establishment” actually means for small businesses.

Handled properly, consultation helps you reduce risk, avoid claims and, in many cases, find alternatives to redundancies altogether.

What Is The Redundancy Consultation Period (And Why It Matters)?

The redundancy consultation period is the time you must spend genuinely consulting with affected employees before any dismissal takes effect. Consultation is more than just informing staff of a decision - it’s a legal duty to talk through proposals, consider alternatives, and respond to feedback with an open mind.

There are two types of consultation in UK law:

• Individual consultation: Required in all redundancy situations to ensure a fair process for each employee (there’s no fixed statutory length, but it must be meaningful).
• Collective consultation: Required when you propose 20 or more redundancies at one establishment within a 90-day period, triggering set minimum periods and specific steps.

Getting consultation wrong is one of the most common reasons employers lose employment tribunals. Proper consultation protects your business, gives you options, and shows your team you’re acting responsibly.

When Do The 30 And 45 Day Consultation Periods Apply?

Under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA), collective consultation kicks in when you’re proposing to dismiss as redundant:

• 20–99 employees at one establishment within 90 days - the minimum collective consultation period is 30 days before the first dismissal takes effect.
• 100 or more employees at one establishment within 90 days - the minimum collective consultation period is 45 days before the first dismissal takes effect.

Key points to understand:

• The threshold is based on “proposals” for redundancy, not just final decisions.
• The numbers are counted per establishment (more on that below), and within any 90-day window.
• The 30 or 45 day consultation period is a minimum; you can consult longer if needed to meet your legal duty to consult “in good time”.
• You must also notify the Secretary of State using the HR1 form within the same minimum timeframes - failing to do so can be a criminal offence.

If you’re proposing fewer than 20 redundancies, you won’t be in the collective regime - but you still need to run fair and meaningful individual consultation before dismissals.

How Long Is A Redundancy Consultation Period For Small Employers?

If collective consultation doesn’t apply (i.e., fewer than 20 redundancies), there’s no statutory minimum number of days for consultation. However, tribunals expect a fair process, which typically means you should:

• Open consultation early - before decisions are finalised.
• Hold at least two individual meetings per affected employee (more if needed).
• Allow time for employees to consider proposals, respond, and suggest alternatives.
• Keep an open mind and genuinely consider feedback.

In practice, many small employers run an individual consultation process over 1–2 weeks (longer if roles are complex or there are reasonable alternatives to explore). The question isn’t just “how long is the consultation period for redundancy?” - it’s whether the process was meaningful, reasonable, and well documented. A rushed process that rubber-stamps a decision can lead to unfair dismissal claims even if the business case is strong.

Do The 30 Or 45 Day Consultation Periods Include Weekends And Bank Holidays?

Yes. Where collective consultation applies, the 30 day consultation period and the 45 day consultation period are calendar days - not working days. So weekends and bank holidays are included when you count the minimum period before the first dismissal takes effect.

Practical tips:

• Start the clock from the date you begin collective consultation (e.g., after you’ve provided the required written information to employee representatives and commenced discussions).
• Don’t issue notice of dismissal to take effect before the 30 or 45 day minimum has elapsed.
• Remember the HR1 notice to the Secretary of State must align with these minimum timeframes.

Even though the statutory consultation period includes weekends and holidays, keep meetings and deadlines reasonable so affected staff actually have a fair opportunity to engage.

What Counts As An “Establishment” For Consultation Thresholds?

“Establishment” generally means the local unit or site to which employees are assigned to carry out their duties. For small businesses, this is commonly a single shop, office, workshop, or warehouse. If you have multiple sites, you’ll need to assess proposed redundancies at each establishment separately.

Points to watch:

• Mobile workers are usually assigned to a base; look at where they’re managed and report into.
• If you centralise work across multiple sites, consider the real organisational unit in practice - not just what’s written on paper.
• When in doubt, get tailored Redundancy Advice. Getting the establishment wrong can mean missing collective consultation obligations.

What Must You Consult On (And With Whom)?

Consultation should cover the key issues that could avoid or reduce redundancies or mitigate their impact, including:

• Ways to avoid dismissals (e.g., hiring freezes, redeployment, reduced overtime, job share, voluntary redundancy).
• Reducing the number of dismissals (e.g., revising selection pools or criteria).
• Mitigating consequences (e.g., retraining, extended notice, outplacement support).
• Selection pools and criteria - objective, transparent, and non-discriminatory.
• Proposed timelines, consultation methods, and how feedback will be considered.

Who you consult depends on the regime:

• Individual consultation: You consult directly with each affected employee.
• Collective consultation: You consult with recognised trade union reps or, where no union is recognised, elected employee representatives. You still need individual consultation alongside the collective process.

Collective consultation must start “in good time”, and in any event no later than the 30 or 45 day minimum before the first dismissal takes effect. Provide representatives with required written information (reasons for proposals, numbers, selection methods, timing, redundancy payments, etc.) so the consultation is meaningful.

A Step-By-Step Process To Run A Lawful Redundancy Consultation

1) Build Your Business Case And Plan

Before you consult, prepare a clear business rationale (e.g., downturn, reorganisation, technology change) and a proposed structure. Draft potential selection pools and criteria that are objective, evidence-based, and non-discriminatory. This groundwork shows the proposal is genuine and helps you consult effectively.

2) Check If Collective Consultation Applies

Count proposed redundancies at each establishment over any 90-day period. If you’re at 20 or more, collective consultation applies with the statutory 30 or 45 day consultation period and HR1 notification. If you’re below 20, plan a thorough individual consultation.

3) Prepare Your Documents

• Information for collective consultation (if applicable).
• Invite letters for individual consultation meetings.
• Selection matrix and scoring guidance for managers.
• Redeployment list and process.
• Meeting notes templates and outcome letters.
• Updated policies in your Staff Handbook covering redundancy and consultation.

4) Start Consultation (Collective And/Or Individual)

Open consultation before making final decisions. For collective consultation, provide the required written particulars and begin discussions with reps. For individual consultation, invite employees to meetings, allow them to be accompanied, and share your proposals, scoring (if applicable), and potential alternatives.

5) Consider Alternatives And Feedback

Demonstrate you’ve genuinely considered ways to avoid or reduce redundancies. Examples include reduced hours by agreement, redeployment, temporary lay-offs (if contractually permitted), or a freeze on non-essential recruitment. If you change your proposal as a result of consultation, document it.

6) Finalise Decisions And Confirm Outcomes

Only once consultation is complete should you confirm outcomes. Issue notices of dismissal (respecting contractual or statutory notice). Make sure payments (including statutory redundancy pay where applicable) are accurate and on time. If you’re offering additional sums, be clear if that’s enhanced redundancy pay and on what terms.

7) Redeploy Where Possible

Offer suitable alternative roles where available. If an employee unreasonably refuses a suitable role, it may affect redundancy pay entitlements - but suitability depends on factors like pay, status, skills, and location, so take a fair, case-by-case approach.

8) Keep Comprehensive Records

Accurate notes, scoring sheets, letters, and timelines are essential. If you later need to show you followed a fair process or complied with collective rules, documentation is your best defence.

Individual Versus Collective Consultation: What’s Different?

All redundancy processes require individual consultation to ensure any dismissal is fair under the Employment Rights Act 1996. Even when collective consultation applies, you must still consult individually before issuing notice.

Collective consultation adds these extra legal steps:

• Consult with union or elected employee reps.
• Provide specified information in writing.
• Start consultation at least 30 or 45 calendar days before the first dismissal takes effect.
• File the HR1 notification to the Secretary of State by the same minimum deadlines.

Failure to collectively consult can lead to a “protective award” of up to 90 days’ gross pay per affected employee, alongside unfair dismissal risks if individual consultation is also lacking.

Selection Pools, Criteria And Equality Risks

Fair selection is critical. Start by identifying a reasonable pool of potentially affected employees (e.g., everyone doing similar roles at an establishment). Then apply objective criteria such as skills, qualifications, performance, and disciplinary record. Avoid criteria that could indirectly discriminate (for example, absence related to disability or pregnancy) unless you’ve carefully adjusted scoring to remove unfair impact.

Best practice tips:

• Consult on the proposed pool and criteria before scoring.
• Use multiple criteria and contemporaneous evidence (appraisals, training records, KPIs).
• Have more than one manager score employees to reduce bias, and moderate results.
• Share individual scores with employees and allow them to challenge inaccuracies.

Common Timing Questions About Redundancy Consultation Periods

How Long Is The Consultation Period For Redundancy If We’re Under 20?

There’s no fixed statutory consultation period; the test is whether your individual consultation was fair and meaningful. As a guide, schedule at least two meetings per person, leave time between meetings for reflection and counterproposals, and don’t rush decisions.

When Does The 30 Or 45 Day Clock Start?

For collective consultation, the clock starts when consultation actually begins - typically when you’ve provided the required written information to representatives and opened discussions. It must be at least 30 or 45 calendar days before the first dismissal takes effect.

Does The 45 Day Consultation Period Include Weekends?

Yes, both the 30 and 45 day consultation periods are calendar days, so weekends and bank holidays are included.

Can We Backdate Consultation If We’ve Already Made A Decision?

No. Consultation must take place “in good time” and before final decisions are made, so you can properly consider alternatives. Announcing a fixed decision and then inviting “consultation” will not meet the legal standard.

Can Employees Be On Garden Leave Or Working Notice During Consultation?

Consultation should happen before notice of dismissal is issued. In collective cases, notice cannot expire before the minimum 30 or 45 day period has passed. If you’re considering garden leave later, check the terms of your Employment Contract and ensure consultation is complete first.

Legal Documents And Policies To Have In Place

A smooth, compliant process relies on having the right documents. Consider:

• Clear contracts with redundancy, notice and lay-off clauses in your Employment Contract.
• Up-to-date redundancy and consultation procedures in your Staff Handbook.
• Objective selection matrices and scoring guidance tailored to your roles.
• Letters for inviting to consultation, confirming outcomes, notice of dismissal, and redeployment offers.
• HR1 notification for collective consultation (if applicable) and a compliance checklist.

If you’re unsure whether your current documents are fit for purpose, it’s wise to get tailored Redundancy Advice before you start.

Pay, Notice And Alternatives To Redundancy

Alongside consultation, check your obligations on pay and notice:

• Statutory redundancy pay: Eligible employees with at least two years’ service are entitled to statutory redundancy pay, calculated by age, weekly pay (capped), and full years of service.
• Notice: Provide statutory or contractual notice, whichever is greater.
• Holiday pay and outstanding entitlements: Settle these on termination.

You might also consider additional support such as outplacement, training, or enhanced redundancy pay to encourage agreement on timelines and mitigate impact. If economic pressures are severe or you’re closing a site, review your obligations when a company closes down so you plan cashflow and notices correctly.

Before you reach dismissal, make sure you’ve considered reasonable alternatives like redeployment or role changes by consent. Where dismissals do proceed, double-check you end an employment contract fairly to reduce the risk of claims.

Compliance Pitfalls To Avoid

• Starting consultation too late or announcing a final decision at the outset.
• Miscounting employee numbers or getting the “establishment” wrong for collective rules.
• Failing to file the HR1 (collective consultation) in time.
• Using subjective or discriminatory selection criteria.
• Skipping individual consultation because you’ve done a collective process.
• Poor record-keeping - you’ll struggle to evidence fairness if challenged.

It can be overwhelming to map out the whole process while also running the business. Don’t stress - with a good plan, the right documents, and early support, you can do this confidently and compliantly.

Key Takeaways

• Consultation is mandatory in all redundancies; it must be genuine and start before decisions are finalised.
• Collective consultation applies at 20+ proposed redundancies per establishment in 90 days, with a minimum 30 day consultation period (or 45 days at 100+). These are calendar days and include weekends and bank holidays.
• Under the threshold for collective rules, there’s no fixed statutory consultation period - but you still need a fair, meaningful individual process.
• Be clear on “establishment”, prepare objective selection pools and criteria, and keep thorough records.
• File the HR1 on time for collective cases and consult both representatives and individuals.
• Make sure your core documents - Employment Contract, Staff Handbook and letters - support a fair process and reflect your obligations.
• If in doubt, get tailored Redundancy Advice early to reduce risk and protect your business.

If you’d like help planning a compliant redundancy consultation period or sense-checking your documents, you can reach us at 0808 134 7754 or team@sprintlaw.co.uk for a free, no-obligations chat.