Guidance on obligations for additional duties during a collective redundancy situation.
In situations of group or large scale redundancies, known as “collective” redundancy situations, it is not enough simply to follow normal, individual redundancy procedures. In a collective redundancy situation additional duties arise requiring the employer to consult with employee representatives. These obligations are in addition to the obligations to pay redundancy pay and to carry out a fair redundancy process in respect of the individuals concerned.
A failure to comply with these obligations can lead to large additional liabilities, potentially far greater than the costs of the redundancies themselves and on top of any awards for unfair dismissal. The maximum award is 90 days’ gross (not net) actual pay for each affected employee.
