UK: Consultation in “small scale redundancies” not necessary

The U.K. Court of Appeal has overturned an EAT decision, reinforcing that redundancies below the legal threshold do not require consultations. This decision provides clarity and predictability for businesses navigating redundancy processes. It maintains the status quo, ensuring no requirement to conduct consultations for small-scale redundancies.

The big picture: The UK government is currently consulting on potential changes to redundancy law, which could alter how redundancies are assessed and compensation handled. Proposed changes include ending the “establishment” concept and considering redundancies on a company-wide basis. Compensation payments could increase from 90 to 180 days if proper consultation processes aren’t followed.

What’s next: Employers should stay informed about these consultations and prepare for potential legislative changes that could impact redundancy protocols.

ADDITIONAL INFORMATION:

Lewis Silkin LLP ‘s detailed analysis of the decision