Employment Rights Act Policy explainer  Collective redundancy changes, April 2026

The second wave of reforms – including changes to collective redundancy protective awards – came into effect in Great Britain in April 2026.

From 6 April 2026, the maximum protective award for failing to meet collective redundancy consultation obligations has increased significantly.

What is changing?

• The maximum protective award for non-compliance with collective redundancy obligations has increased from 90 days’ pay to 180 days’ pay per affected employee
• This applies where an employer fails to properly consult appropriate employee representatives when proposing 20 or more redundancies at one establishment within a 90-day period
• This change applies to dismissals which took place on or after 6 April

Government is currently consulting on further changes to collective redundancy thresholds, which are expected to be implemented in 2027.

What do these changes mean for employers?

Over 5000 cases concerning a failure to consult on collective redundancy with to the Employment Tribunal in 2022/23. Non-compliance will become significantly more expensive for employers.

Employers can prepare for these changes by:

• Reviewing collective redundancy policies and procedures to ensure they meet legal requirements
• Briefing HR teams and senior managers on the increased penalties and ensuring managers understand how to consult appropriate employee representatives
• Ensuring there are processes in place to identify when collective redundancies in the organisation are triggered
• Immediately reviewing the status of any ongoing collective redundancy actions and seeking legal advice if planning significant workforce changes

If you have any questions about these changes, you can reach out to the IoD’s Information and Advisory Service at [email protected]. Full IoD members can access professional advice on HR issues and employment law as part of their membership.