Redundancy Consultation: What Employers Should be Doing

Consultation remains the cornerstone of a fair redundancy process. Employers must give employees a real chance to understand any redundancy proposals their employer has made, respond, and have their views conscientiously considered before any final decisions are made.

That means consulting when proposals are still at a formative stage—i.e., when the decision-maker’s mind is open and consultation can still influence outcomes—rather than after the decision has effectively been made. “Formative” is about openness to influence, not merely “early in time.” 

What the Court of Appeal decided in De Bank Haycocks v ADP RPO UK Ltd 

In a 2024 case, the Court of Appeal overturned a decision of the Employment Appeal Tribunal and restored the tribunal’s finding that a redundancy dismissal was fair. Two points matter most for employers embarking on a redundancy process:

• No blanket requirement for “general workforce consultation” in small-scale redundancies. Where fewer than 20 redundancies are proposed within a 90 day period and so the statutory collective regime is not triggered, employers are not required to hold workforce-wide meetings as a matter of law or “usual standard” to inform and consult on the redundancy proposal. Whether to convene a group session will be fact-dependent; individual consultation can (and often should) address both personal and workforce-wide issues. 
• “Formative stage” clarified. Consultation must occur when it can realistically affect outcomes. The later consultation starts, the greater the risk a tribunal finds the employer’s mind had closed—but timing will be judged on a case-by-case basis. 

Individual consultation: still fundamental

Individual consultation remains central to the fairness of a redundancy dismissal. Employees should be able to: suggest ways to avoid redundancies; comment on the selection pool and criteria used; challenge their selection (including scores where relevant); and explore alternatives such as redeployment. An Employment Tribunal will assess the process holistically, and while there is no universal rule that employers must share every scoring detail in every case, employees must receive enough information and time to make meaningful representations. This may often mean that redacted versions of scores awarded to all members of the pool are provided. 

Collective consultation: when it applies—and when it doesn’t

Statutory collective consultation still applies if an employer proposes 20+ redundancies at one establishment within 90 days, with prescribed information and timing duties. Outside that threshold, De Bank Haycocks confirms there is no separate, quasi-collective obligation on non-unionised employers to run “general workforce consultation” which is what the Employment Appeal Tribunal in that case had suggested. Group briefings may be sensible in some cases, but there is no presumption that omitting them makes dismissals unfair. 

Practical steps for employers

• Engage while proposals are still formative. Be open to feedback on pool, criteria and alternatives; record how you considered it. 
• Use individual meetings to address common issues. Provide information (including how the criteria will be applied) so employees can respond meaningfully. 
• Be proportionate. Group meetings can help with consistency and efficiency, but they are not mandatory in small-scale, non-unionised exercises. Decide based on the workforce, scale and the issues in play. 
• Think holistically. Tribunals look at the overall process (including any internal appeal). A flaw in one step won’t automatically render the dismissal unfair if the process, taken as a whole, was within the band of reasonable responses. 

Disclaimer: This article is for general guidance only and does not constitute legal advice. Seek advice on the facts of your situation.

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