From 6 April 2026, the maximum protective award for failing to meet collective redundancy consultation obligations is doubling from 90 days’ pay to 180 days’ pay per affected employee.
This applies where an employer does not properly consult when proposing 20 or more employees for redundancy at one establishment within a 90-day period. The change is one of the first redundancy reforms to take effect under the Employment Rights Act 2025.
That is the headline, but the real point for employers is not just that the number is bigger. It is that the financial risk of getting collective redundancy wrong has increased sharply.
If an employment tribunal finds that an employer failed to properly consult the right representatives, the potential cost is now much higher. Government says this change is designed to reinforce compliance and deter employers from treating consultation as optional.
What is a protective award?
A protective award is not redundancy pay. It is a penalty an employment tribunal can award where an employer has failed to comply with collective consultation duties.
Acas confirms that, until now, this has been up to 90 days’ full pay for each affected employee. For dismissals on or after 6 April 2026, that maximum doubles to 180 days’ pay.
In plain English, if an employer skips or mishandles consultation during collective redundancies, the bill can get expensive very quickly. This is especially true where large numbers of employees are involved, because the award is based on pay per affected employee, not a single overall penalty.
When do collective redundancy obligations apply?
The current rule is still the one employers need to work to this April. Collective consultation obligations apply where an employer proposes to dismiss as redundant at one establishment 20 or more employees within a 90-day period.
In those cases, employers must consult appropriate representatives and notify the Secretary of State using an HR1 form.
That underlying trigger is not the part changing on 6 April 2026. What changes in April is the maximum protective award for non-compliance.
Wider reform to collective redundancy thresholds is expected later, with the government consulting on an additional organisation-wide threshold for 2027.
So for now, employers should separate the two issues: April 2026 is about the increase from 90 to 180 days pay, while broader threshold reform is still being worked through.
What should employers do now?
First, review your collective redundancy obligations and internal process. If your redundancy procedure still references a maximum protective award of 90 days’ pay, it is already out of date for dismissals happening on or after 6 April 2026.
Second, make sure HR teams and decision-makers understand that collective consultation is not a box-ticking exercise. The duty sits in the Trade Union and Labour Relations (Consolidation) Act 1992, often shortened to TULRCA, and the consequences of getting it wrong have now increased significantly.
Third, tighten up planning around restructures. If a business is moving quickly, it is easy to focus on timelines, headcount and cost-saving targets and overlook the consultation duty.
That is exactly where risk builds. Acas states that employers who fail to collectively consult can face tribunal claims, and from April the exposure doubles from 90 to 180 days.
Plan ahead
For employers, the practical message is simple. If you are considering a restructure involving 20 or more employees at one establishment within 90 days, make sure the consultation process is handled properly from the start.
This is one of those areas of employment law where trying to cut corners can become far more expensive than doing it properly in the first place.
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