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Collective Redundancies

Serious consequences of failure to consult

If you intend to make 20 or more employees redundant within a period of 90 days or less, the collective consultation provisions of the Trade Union and Labour Relations (Consolidation) Act 1992 apply.

Consultation must take place before any employees are given redundancy notices and must be meaningful and genuine. Failure to consult properly may result in the employer being required to pay each employee 90 days’ pay.

An employer also has a statutory duty to notify the Department for Business Enterprise & Regulatory Reform of any planned collective redundancies before redundancy notices are given to employees and a failure to do so could result in a fine of up to £5,000.

Getting this wrong could therefore prove costly and you should seek advice as soon as redundancies are contemplated.