Collective redundancy ― overview

Produced by Tolley in association with

Employment Tax

Guidance

Introduction

Where an employer is proposing to dismiss as redundant 20 or more employees within a 90-day period, this may be classified as a collective redundancy.

In a collective redundancy situation, there are additional obligations on the employer in addition to the steps it should take in order to avoid having a dismissal by reason of redundancy treated as unfair (see the Individual redundancy guidance note for details of those steps). The additional obligations for employers making 20 or more employees redundant are set out in the Trade Union and Labour Relations (Consolidation) Act 1992, ss 188–198, and described below.

For the purpose of collective redundancy, every dismissal is treated as a redundancy except those that the employer can show are for one or more reasons related specifically to the individual concerned.

The guidance that has been provided by the courts for best practice in relation to the statutory requirements around collective redundancies is not set in stone but, in practice, it is often taken as a starting point

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Andy Williams

Legal Director at Charles Russell Speechlys , Employment Tax

Andy advises on all aspects of employment law, with particular expertise in advising companies on large scale workforce issues such as changing the terms of their pension arrangements for staff, reorganisations, changes to terms and conditions and TUPE transfers/outsourcing arrangements. He also has substantial experience of Tribunal work and negotiating severance packages with (and for) senior executives, as well as dealing with other contentious issues such as breach of confidentiality, team moves and post-termination restrictions.In addition, Andy regularly advises on the employment and pensions aspects of corporate transactions, such as sales and purchases of businesses, group restructuring exercises and funding investment projects. He also presents seminars and delivers tailored training sessions to clients, as well as writing for a variety of publications.

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