Collective redundancy changes
From 6 April 2026, the maximum protective award for failing to comply with collective redundancy consultation rules will increase from 90 days’ pay to 180 days’ pay for each affected employee.
The rules apply where an employer is proposing 20 or more redundancies at one establishment within a 90-day period. This means the potential penalty for non-compliance will double. There is no cap on a week’s pay for this purpose, and employees do not need two years’ service to qualify for a protective award.
The new rules will not apply where the dismissals took effect before 6 April 2026.