Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 27 OCTOBER 2026

Collective Redundancies

Paris Smith LLP
Paris Smith LLP
Contributor
Paris Smith LLP

Paris Smith LLP

Paris Smith enjoys an exceptional reputation as a provider of services from its offices in...

View firm profile
Explore more from Paris Smith LLP

The Employment Rights Act 2025 introduces significant changes to collective redundancy obligations in the UK, including a new threshold that will trigger consultation requirements across multiple establishments within an organization. Employers face doubled financial penalties for non-compliance, with protective awards potentially reaching 180 days gross pay per dismissed employee from April 2026, making understanding these evolving requirements critical for workforce planning.

United KingdomEmployment and HR
Claire Merritt
Claire Merritt
Shannon Montford
Shannon Montford

What are collective redundancies?

A collective redundancy exists where an employer proposes to make redundant 20 or more employees at one establishment within a period of 90 days or less.

What are the legal obligations?

When proposing to make collective redundancies, the employer must be careful to comply with specific legal obligations which are in place to try and avoid or reduce the impact that collective redundancies will have on individual employees.

The legal requirements for employers can be complex and, where there has been a failure to comply, Employment Tribunals may issue penalties depending on the seriousness of the employer’s default. These are referred to as ‘Protective Awards’. The maximum penalty is 90 days gross pay for each dismissed employee for dismissals prior to 6 April 2026 and 180 days gross pay for each dismissed employee for dismissal on or after on 6 April 2026. The financial impact on employers can therefore be significant.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

UK Right To Work Checks: What Changes On 1 October 2026

The UK's right-to-work regime is undergoing a fundamental transformation that will extend compliance obligations far beyond traditional employment relationships. From 1 October 2026, businesses engaging contractors, agency workers, platform-based workers, and complex supply chains will face new liability risks that travel up entire contracting chains. Understanding these changes and implementing the required contractual terms, substitution controls, and identity verification systems is now critical for orga
United KingdomEmployment and HR
Mishcon de Reya LLP
Mishcon de Reya LLP
Article

Employment Case Law Update | Autumn 2026 – Unfair Dismissal, Equal Pay And Discrimination

Recent UK employment law decisions have reshaped how employers must approach part-time worker protection, philosophical belief discrimination, freedom of speech in academic settings, and equal pay claims. These landmark cases establish new precedents for workplace policies, disciplinary procedures, and compensation structures that could significantly impact organizational practices.
United KingdomEmployment and HR
Shakespeare Martineau LLP
Shakespeare Martineau LLP
Article

Acas Publishes Fully Revised Draft Code Of Practice On Disciplinary And Grievance Procedures

On 30 July 2026, Acas published a fully revised draft Code of Practice on Disciplinary and Grievance Procedures, marking the first comprehensive update since 2015. The proposed changes introduce significant new requirements around informal resolution, reasonable adjustments for disabled workers, and updated guidance on suspension, mediation, and the right to be accompanied at workplace meetings.
United KingdomEmployment and HR
Winckworth Sherwood LLP
Winckworth Sherwood LLP
Article

Prevention Of Illegal Working — Key Changes Taking Effect 1 October 2026

The UK's illegal working regime has undergone its most significant expansion since inception, extending right to work obligations beyond traditional employment to encompass workers, individual subcontractors, and platform-based arrangements. A new "extended liability" framework now exposes businesses throughout supply chains to civil penalties of up to £60,000 per illegal worker, even where they lack direct contractual relationships.
United KingdomEmployment and HR
Mayer Brown
Mayer Brown
Article

Reward Autumn Update 2026

The autumn 2026 edition of the Reward update examines significant proposals to reform directors' remuneration reporting requirements, including changes to the DRR and removal of the annual shareholder advisory vote. It also covers FCA consultation on solo-regulated firms' remuneration, the impact of Employment Rights Act changes on share plans, equal pay reform proposals, and updates to AIM rules affecting corporate governance and remuneration disclosure.
United KingdomEmployment and HR
Macfarlanes LLP
Macfarlanes LLP
Article

Employer Right To Work Checks: Extended Liability From 1 October 2026

UK employer right to work checks are expanding on 1 October 2026 to cover workers, subcontractors, and gig economy arrangements, with civil penalties of up to £60,000 per worker extending beyond direct employers through contractual chains. Businesses must now review their engagement models, update contracts, and implement new verification systems to avoid liability for workers they may never have directly engaged.
United KingdomEmployment and HR
Paris Smith LLP
Paris Smith LLP
Article

Employment Rights Act 2025: Key Changes, Implementation Timeline & What Employers Need To Know

The Labour Government's Employment Rights Act 2025 introduces sweeping reforms to worker protections and employment practices across the UK. With implementation phased over the next two years, employers face significant changes to unfair dismissal rights, zero-hours contracts, flexible working arrangements, and trade union relations. Understanding the detailed timeline and preparing for these transformative measures will be crucial for businesses navigating this new employment landscape.
United KingdomEmployment and HR
Paris Smith LLP
Paris Smith LLP
Article

Annual Accounts: Dos And Don’ts For Directors When Approving And Filing

Directors face serious legal consequences when they fail to properly prepare, approve and file company accounts. This guide examines the critical procedural requirements under the Companies Act 2006, from maintaining robust financial records to securing proper board approval, while highlighting common pitfalls that can lead to criminal liability and director disqualification.
United KingdomCorporate/Commercial Law
Paris Smith LLP
Paris Smith LLP
Article

Industrial Action – Protections Against Detriments And Dismissal

The Employment Rights Act 2025 introduces significant changes to protections for employees taking industrial action, expanding beyond the previous 12-week dismissal window and addressing detriments short of dismissal. These reforms respond to a Supreme Court ruling that found existing law incompatible with the right to freedom of assembly and association under the European Convention on Human Rights.
United KingdomEmployment and HR
Paris Smith LLP
Paris Smith LLP