What is the redundancy consultation process?
The redundancy consultation process in the UK is a key part of a fair redundancy procedure. Employers are expected to consult with affected employees before any final decision to dismiss is made. While there is no standalone statutory requirement to carry out individual consultation in every case, a failure to consult will usually render a dismissal unfair under general unfair dismissal principles.
Where an employer proposes to make 20 or more redundancies at one establishment within a 90-day period, there is a separate statutory obligation to carry out collective consultation under the Trade Union and Labour Relations (Consolidation) Act 1992. In those cases, consultation must begin in good time and at least 30 days before the first dismissal takes effect (or 45 days if 100 or more redundancies are proposed).
In all cases, consultation must take place before any final decisions are made. It should involve a genuine attempt to discuss the reasons for the proposed redundancies, the roles affected, and ways of avoiding or reducing dismissals.
What happens during a redundancy consultation?
During a redundancy consultation, the employer should meet with the affected employee to explain the business rationale for the proposed redundancy and how the employee has been identified, including the selection pool and criteria where applicable.
The employer should explore possible alternatives to redundancy. This may include redeployment, changes to duties, reduced hours, or other measures to avoid dismissal. The employee must be given sufficient information to understand the proposal and a meaningful opportunity to respond, challenge the selection, and suggest alternatives.
Consultation is not a single event but a process. It will typically involve more than one meeting, particularly where issues are raised that require further consideration. The process must be genuine; consultation will be inadequate if the outcome is predetermined.
Your rights during redundancy consultation
Employees are entitled to be informed of the reasons for the proposed redundancy, the selection pool, the selection criteria, and how those criteria have been applied. The employer must act reasonably in identifying the pool and applying the criteria, and must avoid unlawful discrimination.
In collective redundancy situations, employees have the right to be consulted through appropriate representatives, either trade union representatives or elected employee representatives. The employer must provide prescribed information to those representatives and consult with a view to reaching agreement.
There is no general statutory right to be accompanied at redundancy consultation meetings, although some employers allow this contractually or as a matter of practice.
What if the redundancy consultation process is not followed?
If an employer fails to carry out a fair consultation process, the dismissal may be found to be unfair. This includes situations where there is no meaningful consultation, where the employee is not properly informed of the basis for their selection, or where the decision has effectively been made before consultation begins.
In collective redundancy cases, a failure to comply with statutory consultation obligations can result in a protective award of up to 90 days’ pay per affected employee, in addition to any unfair dismissal claims.
Whether a redundancy is fair will depend on the overall procedure followed, including consultation, selection, and consideration of alternatives. A defective consultation process will often be sufficient to undermine the fairness of the dismissal.
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