Since 1st March 1996 employers have been under a statutory duty to consult appropriate representatives of employees about impending redundancies if at least 20 employees are being dismissed at one establishment within a 90 day period (TULRCA 1992, s.188(1) as amended by Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 1995, SI 1995/2587). Consultation must begin in good time and in any event 30 days before the first of the dismissals takes effect or 90 days if 100 or more employees are to be dismissed.

From 1st November 1999 onwards if there is a recognised trade union the consultation must be with trade union representatives (Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 1999, SI 1999/1925). Previously, until 31st October 1999, the law and definition of appropriate representatives was such that an employer could choose whether to consult trade union representatives or other employee representatives.

These rules implement the EC Collective Redundancies Directive 98/59/EC in Britain.

Failure to consult as required can lead to a Tribunal making a protective award unless there were "special circumstances which render full compliance not reasonably practicable" - see TULRCA 1992, s.188(7). However, it is not easy for an employer to take advantage of this escape clause (see Clarks of Hove Ltd v Bakers’ Union CA 1978 ICR 1076, which shows that insolvency alone is not a "special circumstance").

Individual consultation is, of course, essential if the statutory duty to consult appropriate representatives of employees noted above does not apply. Whether or not there is a statutory duty on an employer to engage in collective consultation about impending redundancies in any particular case it is essential that employers consult with and give advance warning to individual(s) who may be made redundant (see ACAS Handbook No 12 on "Redundancy Handling" and notes at ACAS/addresses, tel & fax nos for availability). Failure to do so will make it likely that a Tribunal would decide that any resulting dismissal(s) was unfair even though it was genuinely caused by redundancy - see Unfair dismissal/redundancy and unfair dismissal/redundancy dismissal being unfair dismissal .

See also notes at Redundancy/consultation/trade unions and/or Consultation with employees/Information and Consultation regulations 2004 and/or generally at Implied terms in employment contracts/duties of employer , Codes of Practice and Polkey case .