Employment Rights Act April 2026 Changes to the ‘Protective Award’ under the Employment Rights Act 2025

As you may be aware, there are many changes to employment law coming into force in light of the new Employment Rights Act 2025 (“ERA 2025”).

One of those changes includes increasing the maximum ‘protective award’ for failure to collectively consult during a redundancy process from 90 days’ gross pay to 180 days’ gross pay per affected employee. This change will come into force on the 06 April 2026.

What does this mean?

If an employer is proposing to make 20 or more redundancies at one establishment within a 90 day period, then an employer is required by law to collectively consult with either a trade union representative or elected employee representatives on its proposals. The consultation periods are:

• 20-99 redundancies – the consultation must start at least 30 days before any dismissals take effect; and
• 100 or more redundancies – the consultation must start at least 45 days before any dismissals take effect

If an employer fails to meet its obligation to collectively consult, then an employee can make a claim to an Employment Tribunal for their employer’s failure to collectively consult.

Previously, if a claim was successful, an employee could be awarded up to 90 days’ gross pay. However, this is now increasing to 180 days’ gross pay per affected employee. This is the maximum award an Employment Tribunal can award when an employer fails to meet its collective redundancy obligations. Therefore, an employer’s failure to collectively consult, could create a significant cost burden on them.

Of course, the Tribunal will continue to have discretion to make awards for such a period as is just and equitable in all the circumstances, considering the seriousness of the default. Therefore, where an employer has taken or has not taken some steps to comply, this will be taken into account in determining the length of the protected period.

This change will apply to dismissals which have taken place on or after 06 April 2026.

What should employers do now?

It is important that employers now take the opportunity to review any policies and procedures they have in relation to redundancy to ensure they are in line with the new changes under the ERA 2025.

Further, it is important that businesses plan ahead to ensure that they have enough time to engage in a meaningful consultation process with their employees/ representatives and meet the collective consultation requirements, as set out above.

In addition, HR teams and senior managers should be briefed to ensure they are aware of when the obligation to collectively consult arises and ensure they understand how to consult appropriately. It is important that the consultation is taken with a view to reaching an agreement and exploring ways of how redundancies can be avoided, and therefore the consultation should try and address:

• Ways of avoiding dismissals
• Ways of reducing the numbers to be dismissed; and
• Ways of mitigating the consequences of dismissals

Are there any further changes expected?

Yes. The ERA 2025 will also introduce an additional threshold test for employers.

Collective consultation will still be required where an employer proposes to make 20 or more redundancies at ‘one establishment’ within a 90-day period.

However, the ERA 2025 introduces an additional organisation wide threshold for collective redundancy obligations. The Government plans to consult on the level which the threshold should be set at. Once introduced, organisations will be required to undertake collective redundancy obligations where they propose to make redundancies which meet, or are in excess of, the threshold number across the whole organisation over a 90-day period.

This change, however, is not expected to come into force until 2027.

If you require any advice or are proposing to make 20 or more redundancies within a 90-day period, please feel free to contact AfterAthena (part of the Napthens Group) who are able to offer 30 minutes of free advice to QCS members, and can advise on your collective consultancy obligations further.