Manage staff redundancies

Redundancy consultations

Consultation is when you talk with employees and their representatives to explain your planned changes and get their feedback and input.

Consultation must be 'meaningful' – this means you must get their feedback and input, and seriously consider their proposals.

You'll need to follow 'collective consultation' rules if you're planning to make 20 or more employees at the same workplace redundant within 90 days. This means you must consult with any recognised trade union or employee representatives.

If a collective consultation has already started on a separate redundancy situation in the same organisation, those affected by the proposed redundancy do not have to be included in a new redundancy proposal. But you should not stagger redundancies to avoid consultation.

During the coronavirus (COVID-19) pandemic, you must still consult your employees. You may need to do this remotely. There is no legal requirement to consult face to face.

Consulting with employees

You must discuss your planned changes with each employee who could be affected. This can include employees who are not actually losing their jobs.

You must talk with each employee individually to explain changes and get their ideas and feedback. The meeting can take place over the phone if you both agree to it and there is a clear need, for example if someone works remotely.

Your plans must not be finalised at this stage and you should aim to include any employees' suggestions or ideas you agree with.

Download a letter template for inviting an employee to a consultation meeting.

Consulting with trade unions or employee representatives

If you're planning to make 20 or more employees at the same workplace redundant within 90 days (large-scale or 'collective' redundancies), you must follow 'collective consultation' rules.

This means you must consult any recognised trade union or elected employee representatives. You should also consult employees individually.

To make sure you consult with the relevant representatives, you must identify the employees at risk of redundancy and who will represent them in the consultation.

Employees can elect employee representatives specifically for the consultation but you may need to provide training for the role. Or there may be an agreement in place which means an existing group of employee representatives have a remit to consult with the affected employees. For example, you may have an information and consultation agreement.

If nobody wants to be elected as an employee representative, you should consult with the affected employees directly. This should be a last resort.

By law, trade union and employee representatives have the right to reasonable paid time off for trade union duties. Find out more in the Acas Code of Practice on time off for trade union duties and activities (PDF, 749KB, 48 pages).

When to consult individual employees in a large-scale redundancy

You may need to be flexible about how you arrange individual consultation.

Some organisations wait until collective consultation has ended before consulting individual employees who may be at risk of redundancy. But there may be situations when it's appropriate to run collective and individual consultations at the same time.

Example

An employer may have agreed with employee representatives how many employees will be made redundant and how they'll be selected. But they may still be consulting with them about other redundancy related issues. In this situation, it may be appropriate to start individual consultation with the affected employees.

How to consult

There are set rules for collective redundancies which you must follow. There are no set rules for consultations with fewer than 20 redundancies but it's good practice to follow the same process.

Download the Acas guide to handling large-scale redundancies (PDF, 522KB, 64 pages).

An employment tribunal could accept a claim for unfair dismissal if you cannot show you've consulted an employee or employee representatives.

You must consult any employees who are on maternity leave.

Prepare for the consultation

You should get the information ready that you're going to share.

During the consultation period you must let employees or appropriate representatives, for example a trade union or elected employee representative, know in writing:

  • why you need to make redundancies
  • the number of employees and which jobs are at risk
  • how you will select employees for redundancy
  • how you plan to carry out the redundancies, including timeframes
  • how you will calculate redundancy pay
  • if you're using agency workers, how many, where they’re working and the type of work they're doing

You should also have:

  • a trained person to lead the consultation
  • a clear way of presenting your redundancy plan
  • a questions and answers document

You can get Acas training on managing redundancies.

When to begin your consultation

It's important you do not present a finalised redundancy plan to your employees. You must leave enough time to consult them and include any of their suggestions you agree to.

You can only give an employee notice of redundancy once you've finished consulting everyone and a minimum period has passed. This could be 30 or 45 days depending on how many redundancies you’re making.

When to begin consultation depends on the number of redundancies.

You must include in your total:

  • voluntary redundancies
  • employees you’re moving into other roles

You only need to include employees who are on fixed-term contracts if you're making them redundant before the end of their contracts.

Fewer than 20 redundancies

There are no set rules around when to begin consultation before giving redundancy notices.

20 to 99 redundancies within 90 days in 1 workplace

You must begin consultation at least 30 days before giving the first redundancy notice.

100 or more redundancies within 90 days in 1 workplace

You must begin consultation at least 45 days before giving the first redundancy notice.

Tell the government about collective redundancies

By law, you must let the Redundancy Payment Service (RPS) know your plans before the consultation starts.

Fill in form HR1 on GOV.UK and send it to the RPS address on the form.

The RPS acts on behalf of the Secretary of State for the Department for Business, Energy and Industrial Strategy (BEIS).

You can be fined if you do not notify the RPS.

If there has been a business transfer (TUPE)

If there are redundancies after a business transfer (TUPE), consultation can start before the transfer and continue after. But you should not select employees for redundancy before the transfer takes place.

Find out more about TUPE.

How long the consultation lasts

There are no rules for how long the consultation should last. It can last longer than the minimum periods listed above if it's a large or complex redundancy situation.

You do not need to reach agreement for the consultation to come to an end. You simply need to show that the consultation was genuine and that you aimed to reach agreement.

You must be able to show that you've listened to your employees and that you responded to questions and suggestions.

What to discuss during the consultation

Consultations allow you to explain to employees why you're planning redundancies.

You must discuss with employees:

  • ways to avoid or reduce the redundancies
  • how to reduce the effect of the redundancies
  • how the organisation can restructure or plan for the future
  • how employees are selected for redundancy

You must consider and respond to any suggestions made by employees. You can reject any ideas you do not think are reasonable but you should explain why. It's important to document all discussions and the reasons for your decisions.

You might not always be able to avoid redundancies but by working with employees you'll often be able to save jobs and come away with a better idea of how your business can plan for the future.

Information that should be shared

You should be as open as possible with unions and employee representatives. This will allow employees to feel part of the conversation.

Not providing enough information often leads to frustration and mistrust and can sometimes mean the consultation is invalid.

You should aim to provide the right level of detail for staff to understand your proposals. The information should not be so long or complex that a specialist is needed.