Potential implementation: April 2026 and April 2027

What is the position now?

At present, employers only have to carry out collective consultation if they plan to make 20 or more redundancies at the same workplace. Businesses with multiple sites can often avoid this requirement by spreading redundancies across different locations. If the rules are breached, compensation is limited.

What is changing?

The rules are expected to widen when collective consultation is required. Employers will still need to collectively consult where 20 or more redundancies are planned at one location but a new test will also apply based on the total number of employees affected across the whole business, even if they work at different sites. The exact details will be set out in future regulations. (2027)

The financial risk will also increase. The maximum compensation for failing to consult properly is expected to double to 180 days’ pay per affected employee. (April 2026)

What does this mean for employers?

Multi-site employers are more likely to be caught by collective consultation rules and mistakes will be more costly. Redundancy planning will need earlier legal input and closer oversight to manage risk.

As at Feb 26