Collective Redundancy: Increased Protective Award

From 6 April 2026, the maximum protective award for failing to meet collective redundancy consultation obligations increased significantly. This change reinforces the importance of following proper collective consultation procedures.

Key changes

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 take place on or after 6 April.

Coming later

Further changes to collective redundancy thresholds are expected in 2027. This page will be updated when details are confirmed.

Actions to take:

• Check your collective redundancy policies and procedures to ensure they meet legal requirements
• Brief HR teams and senior managers on the increased penalties, and ensure managers understand how to consult appropriate employee representatives.
• Ensure you have processes in place to identify when collective redundancies in your organisation are triggered.
• Seek legal advice if you are planning significant workforce changes

Territorial extent

Changes to Collective Redundancy apply across England, Scotland and Wales. They do not apply in Northern Ireland, where the matter is devolved.

More information

For more information see the Collective Redundancy factsheetopens assets.publishing.service.gov.uk in a new tab