Make Work Pay: threshold for triggering collective redundancy obligations
We are seeking views on the level and methods by which the new organisation-wide threshold for triggering collective redundancy obligations might be set.
Collective redundancy obligations are an important part of ensuring a fair and transparent process when employers need to make redundancies.
Currently, employers are only required to undertake collective redundancy obligations when making 20 or more redundancies at one establishment. 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.
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 on the level and methods by which the new organisation-wide threshold for triggering collective redundancy obligations might be set.
The government is considering 2 options to set the new organisation-wide threshold:
- using a single fixed number in the range of 250 to 1,000
- tiering this new obligation based on number of employees
These proposals will need approval from Parliament before taking effect.
The government is seeking responses from all interested parties.