When employers ask us about redundancy, one concern comes up time and again – “how much consultation is enough?”
It’s a fair question and it’s one of the areas tribunals examine most closely when deciding whether a dismissal was fair. Many employers believe consultation simply means informing employees that redundancies are happening. It doesn’t.
Meaningful consultation is about giving employees a genuine opportunity to understand the proposals, challenge them and potentially influence the outcome before any final decisions are made. So, what does that look like in practice? Hari Singh (Employment Lawyer) explains all.
Consultation starts before decisions are made
One of the quickest ways to undermine a redundancy process is to give the impression that the outcome has already been decided. Employees should be placed ‘at risk’ of redundancy, not told that redundancy is inevitable. If evidence suggest managers have already reached a final decision before consultation begins, it becomes difficult to argue that the consultation was genuine.
Ask yourself – Could an employee realistically change your thinking during consultation? If the answer is no, your process may already be on shaky ground.
Consultation should be a conversation, not a presentation
A common mistake is treating consultation meetings as an opportunity to explain decisions. Instead, they should be an opportunity to discuss them. Employees should understand:
- Why redundancies are being proposed.
- Why they have been included in the selection pool.
- How selection criteria will be applied.
- Their provisional scores (where applicable).
- Alternatives to redundancy.
- The proposed timetable.
- Their opportunity to challenge the process.
Just as importantly, employers need to demonstrate that they have listened to the feedback and properly considered any suggestions before reaching a final decision.
Individual and collective consultation aren’t the same thing
This is an area that often causes confusion. Where collective consultation obligations apply, employers must consult employee representatives about the overall redundancy proposals.
That doesn’t replace individual consultation. If employees are to be fairly dismissed for redundancy, employers will usually still need to consult with each affected employee about how the proposals affect them personally. Think of it this way:
Collective consultation focuses on the wider redundancy proposals and ways to avoid or reduce dismissals.
Individual consultation focuses on the impact on each employee, including their selection, alternative employment and any representations they wish to make.
In practice, where collective consultation is required, employers will usually need to run both processes alongside each other.
Don’t overlook practical adjustments
Meaningful consultation doesn’t look identical for every employee. Some employees may need additional support to participate fully in the process. That might include:
- allowing a companion to attend meetings;
- providing information in writing beforehand;
- holding meetings remotely where appropriate; or
- making reasonable adjustments for disabled employees.
Taking these practical steps can make the consultation process fairer and significantly reduce legal risk.
The biggest consultation mistakes employers make
We tend to see the same themes and issues crop up:
- Making the decision before consultation starts.
- Rushing meetings because the business wants to move quickly.
- Treating consultation as a one-way update.
- Failing to properly consider employee feedback.
- Forgetting that collective and individual consultation serve different purposes.
Each of these mistakes can undermine an otherwise genuine redundancy exercise.
How can we help?
Whether you’re managing an individual redundancy process or a larger collective exercise, we can help you reduce risk and navigate the process with confidence. We can support with:
- Individual redundancies – access to documentation, templates and unlimited employment law advice through our Intelligent Employment service.
- Collective redundancies – end-to-end legal support, including access to our Collective Consultation Toolkit and expert guidance throughout the process.
- Outplacement – through Working Transitions, part of the Empowering People Group, helping employees navigate redundancy and career transitions through one-to-one coaching, group coaching and virtual workshops.
Whether you need practical documentation, legal advice or support for affected employees, Halborns and the wider Empowering People Group are here to help.
What’s next in our Redundancy Risk Series?
In blog #1, we looked at the 10 biggest redundancy mistakes we see employers make.
Next time, we’ll tackle another question employers regularly ask – “Could we defend our selection scores if they were challenged in tribunal?”
We’ll look at redundancy selection pools, scoring criteria and how to make decisions that are objective, evidence-based and easier to defend.
This update is accurate on the date it was published but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
