Extension of collective redundancy consultation threshold

Implementation date: Expected 2027

The Employment Rights Act 2025 extends the requirement for collective redundancy consultation, so the relevant number of employees is no longer to be calculated only at site/workplace level. Collective consultation will be triggered by either: 

• 20 or more redundancies at one establishment; or
• an organisation-wide threshold, with four options being the subject of a consultation:
  • a single number of redundancies at a fixed number set somewhere between 250 and 1,000 proposed redundancies;
  • the number of redundancies constituting a certain percentage of the organisation's total workforce;
  • a tiered approach based on the number of proposed redundancies and the number of employees in the organisation, eg:
    • 250 redundancies for organisation's with up to 2,500 employees;
    • 500 redundancies for employers with 2,500 to 9,999 employees; and
    • 750 redundancies for those with 10,000 or more employees; or
  • a tiered approach using a combination of both fixed numbers and a percentage, ie:
    • if the organisation employs fewer than a fixed number of employees, obligations would be triggered if it plans to make a fixed percentage of them redundant; or
    • if the organisation employs more than a fixed number of employees, obligations would be triggered if it plans to make a fixed percentage of them redundant.

In its Plan to Make Work Pay and Employment Rights Act: timeline update, the Government has said that this measure will take effect in 2027.