Collective Redundancy Changes in 2026: What Employers Need to Know
- Bearman HR | HR Services in Kent
- 3 days ago
- 4 min read
A Practical Guide for Businesses Managing Restructures and Redundancies
Redundancy is already one of the most difficult responsibilities employers face.
For many business owners and managers, the challenge is not simply commercial. It is balancing operational pressures while making sure the process is handled fairly, legally, and professionally.
From April 2026, changes to collective redundancy rules under the Employment Rights Act 2025 will increase the importance of getting consultation processes right, particularly for businesses operating across multiple locations or restructuring gradually over time.
For many employers, the fundamentals of redundancy will stay the same. However, the way collective consultation obligations are triggered and enforced is changing and businesses should understand where new risks may arise.
This is not about stopping employers from restructuring. It is about ensuring consultation happens properly when workforce reductions reach certain thresholds.
What Is Changing with Collective Redundancy in April 2026?
One of the most important changes relates to how redundancy numbers may be assessed across a business.
Currently, collective consultation obligations are generally triggered when 20 or more redundancies are proposed at a single establishment within a 90 day period.
From April 2026, a broader organisational approach is expected to apply.
This means redundancy proposals may need to be considered across:
Multiple sites
Different business locations
Separate departments within the same organisation
Wider organisational structures
For multi site employers or businesses restructuring in phases, this could significantly affect when collective consultation obligations arise.
What Is Collective Redundancy Consultation?
Collective redundancy consultation is a legal process employers must follow when proposing larger scale redundancies.
The purpose is to ensure employees are consulted meaningfully before final decisions are made.
This includes discussing:
Ways to avoid redundancies
Reducing the number of dismissals
Mitigating the impact on affected employees
Alternative options within the business
Importantly, consultation must begin while proposals are still genuinely open for discussion.
It cannot simply be a process of informing employees after decisions have already been made.
Why Are These Changes Important for Employers?
The practical impact is less about new rights and more about increased accountability and earlier scrutiny.
From April 2026, employers are likely to face:
Greater scrutiny around consultation timing
Increased expectation that alternatives were properly explored
Stronger focus on record keeping and planning
More proactive enforcement activity
This is particularly important for businesses that:
Operate across multiple sites
Make staffing reductions gradually
Restructure in stages
Manage separate teams independently
What previously felt like separate exercises may now need to be treated as one collective redundancy situation.
What Happens if Employers Get Collective Redundancy Wrong?
Collective redundancy mistakes can become expensive very quickly.
Where consultation obligations are breached, employment tribunals can award up to 90 days’ pay per affected employee through protective awards.
Potential risks include:
Tribunal claims
Financial penalties
Employee relations issues
Reputational damage
Delays to restructuring plans
From April 2026, these risks may increase as enforcement becomes more joined up and proactive alongside wider Fair Work Agency reforms.
What Is Staying the Same?
It is equally important not to create unnecessary panic. The core principles of collective redundancy law remain unchanged.
The following still apply:
The 20 redundancy threshold remains
Consultation must be meaningful
Minimum consultation periods still exist
Employee representatives must be involved
Redundancy should remain a last resort
This is not a complete rewrite of redundancy law. It is a tightening of how obligations are identified and enforced.
Do Employers Still Have Control Over Restructures?
Yes, absolutely.
The law still allows employers to:
Restructure businesses
Reduce headcount where necessary
Reorganise teams
Manage commercial pressures
Make strategic operational decisions
The key requirement is process discipline. Employers need to demonstrate that consultation was genuine, timely, and properly documented.
What Should Employers Be Doing Before April 2026?
There is no need for immediate panic or wholesale restructuring of procedures.
However, now is a sensible time to review how redundancy situations are assessed internally.
1. Review Redundancy Procedures
Ensure policies and processes reflect current legal expectations and operational realities.
2. Check How Redundancy Numbers Are Assessed
Businesses with multiple sites or phased restructures should ensure they are taking a joined up view across the organisation.
3. Train Managers on Early Warning Signs
Managers should understand when redundancy proposals may trigger collective consultation obligations and when HR advice is needed.
4. Improve Documentation and Planning
Employers should be able to demonstrate:
When proposals first emerged
When consultation began
What alternatives were considered
How decisions were reached
Simple, clear records are usually enough.
Why Early HR Advice Matters in Redundancy Situations
Collective redundancy is one of the areas where getting advice early can significantly reduce both legal and operational risk.
Small timing mistakes or informal decision making can unintentionally trigger obligations employers were not expecting.
The earlier risks are identified, the easier they are usually to manage.
How Bearman HR Can Help
At Bearman HR, we help businesses approach restructures and redundancies in a calm, commercially sensible, and legally compliant way.
We can support with:
Reviewing redundancy procedures
Advising whether collective consultation obligations apply
Planning consultation timelines
Supporting managers during restructures
Practical HR guidance tailored to your business
No panic. No unnecessary complexity. Just straightforward HR support that helps businesses make confident decisions at the right time.
📞 01634 481390 📞 07956 466 247✉️ info@bearmanhr.co.uk🌐 www.bearmanhr.co.uk
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