Collective Redundancy: Protective Award to Double from 6 April 2026

From 6 April 2026, the maximum protective award for failing to meet collective redundancy consultation duties will double from 90 days’ pay to 180 days’ pay per affected employee who has not been properly consulted with. This significant increase, introduced by the Employment Rights Act 2025, marks one of the most impactful changes for employers handling large‑scale restructuring.

The protective award is ordered where an employer does not properly consult employee representatives when proposing 20 or more redundancies within a 90‑day period at a single establishment. The new limit applies to all dismissals taking place on or after 6 April 2026. Further details about these changes can be found here.

The Act also signals broader reforms coming in 2027, including a new organisation‑wide threshold test, meaning collective consultation could be triggered even where redundancies are spread across multiple sites. Further details in relation to those changes will follow in later regulations.

What this means for Employers

The doubling of the protective award greatly increases financial exposure. A failure to consult could now result in up to six months’ pay per affected employee, turning procedural missteps into costly liabilities. Potential total liability could also reach 225 days’ pay when combined with the potential 25% uplift for non-compliance. It also raises expectations around early planning, accurate workforce data, and timely engagement with employee representatives.

Some essential practical steps for Employers to take imminently would be the following:

1. Review policies and templates to ensure they reflect the new 180‑day cap and current consultation duties;
2. Train HR and managers so that they recognise when collective consultation is triggered and understand the consequences of non‑compliance;
3. Put systems in place to spot when redundancy numbers approach the threshold, particularly across multiple locations; and
4. Seek legal advice early if you are planning significant workforce changes, especially ahead of the 6 April 2026 implementation date.

This change is a clear message: consultation is not a formality; it is a legal and financial imperative.

Notes to Editors

Rahman Lowe Solicitors is a specialist employment law firm. For further information or to discuss a potential claim, please contact us on 020 3950 5234 or info@rllaw.co.uk.

31 March 2026