Consultation on threshold for triggering collective redundancy obligations has been published
Currently, employers are only required to undertake collective redundancy obligations when making 20 or more redundancies at one establishment. The Government has raised a concern this has led to situations where large numbers of employees at an organisation are not being consulted because the redundancies are spread across multiple sites below the current threshold.
As a result the Employment Rights Act 2025 will introduce new protections so that employers will be required to undertake collective redundancy consultation and notification whenever they make a threshold number of redundancies across their entire organisation.
The government is seeking views via consultation which went live on 25th February, on the level and methods by which the new organisation-wide threshold for triggering collective redundancy obligations might be set.
The Consultation seeks view on the following proposed methods:
Method 1: Fixed Number
The simplest way to set the threshold is via a single fixed number.
Example:
The threshold number is X. This means that collective redundancy obligations must
be fulfilled when the employer is proposing to dismiss as redundant within a period of
90 days or less:
• 20 or more employees at one establishment; or
• X# or more employees (across the employer’s organisation).
Method 2: Variable (Percentage-Based Threshold)
Another way to set the threshold is via a single percentage of the employer’s total
number of employees.
Example:
The threshold number is X%. This means that collective redundancy obligations must
be fulfilled when the employer is proposing to dismiss as redundant within a period of
90 days or less:
• 20 or more employees at one establishment; or
• X% of the employer’s total employees across the organisation
Method 3: Fixed, based on number (#) of employees
Another method would be to set different fixed thresholds, according to the size of
employer.
Example:
For employers with 20-X employees: the threshold number is A# or more
redundancies.
For employers with X -Y employees: the threshold number is B# or more
redundancies.
For employers with over Y employees: the threshold number is C# or more
redundancies.
This would mean that collective redundancy obligations must be fulfilled when the
employer is proposing to dismiss as redundant within a period of 90 days or less:
• 20 or more employees at one establishment; or
• the threshold number of employees which applies to that employer i.e.,:
o A# or more redundancies, for employers with 0-X employees;
o B# or more redundancies, for employers with X -Y employees;
o C# or more redundancies, for employers with over Y employees;
Method 4: Variable & Fixed, based on # of employees
The final method being considered is to use both fixed numbers and a percentage to tier the threshold.
Example:
Where an employer employs fewer than Y# employees, CR obligations will be
triggered whenever A% of employees are proposed redundant across the entire
business. Where an employer employs Y# or more employees, CR obligations will be
triggered whenever B# or more redundancies are proposed across the entire
organisation. This would mean that collective redundancy obligations must be fulfilled when the
employer is proposing to dismiss as redundant within a period of 90 days or less:
• 20 or more employees at one establishment; or
• the threshold number of employees which applies to that employer:
o A% of employees, where an employer employs fewer than Y#
employees
o B# or more employees, where an employer employs Y# or more
employees.
The consultation closes on 21st May 2026.
To access the details of the consultation, or to partake please use the link below.
Make Work Pay: threshold for triggering collective redundancy obligations consultation