Our response to the consultation on collective redundancy obligations

To inform our response, we gathered feedback from employers across the NHS through a range of engagement methods, including a survey and input from employer networks. 

Section 1 - Methods for setting the threshold

This section aimed to gather employer perspectives on the different methods the government is considering for setting a new organisation-wide threshold for collective redundancy obligations. The four methods employers fed back on were:

Method 1 - A single fixed number applying to all employers.

Method 2 - A variable percentage-based threshold calculated from an employer’s total workforce.

Method 3 - Tiered fixed numbers that vary according to employer size.

Method 4 - A hybrid model combining a percentage trigger for smaller organisations with a fixed number for larger ones. 

Key findings:

Employers feedback demonstrated a clear preference for a single fixed number threshold to trigger organisation‑wide collective redundancy consultation. This approach was described as the simplest and most transparent, making it easier for employers, employees and trade unions to understand when obligations apply. It was also considered more practical to administer, particularly in large and complex organisations.

There was less support for percentage‑based or hybrid approaches, which were described as more complex. Employers highlighted the administrative burden of continually calculating workforce size and the potential for inconsistency or misinterpretation. There were also concerns that such approaches could undermine the policy intent if significant redundancies did not trigger consultation in larger organisations.

Section 2- What the threshold level should be 

This section sought views on the level at which the new organisation-wide threshold for triggering collective redundancy consultation should be set, alongside the existing single establishment trigger. The government is considering a threshold within the range of 250 to 1,000 redundancies and sought feedback on where within this range the level should sit.

Key findings:

Employers had mixed views on where the organisation-wide threshold should be set, reflecting the diversity of NHS organisations. Some felt a threshold below 250 redundancies could create disproportionate administrative burden, while others expressed concern that a higher threshold could reduce opportunities for meaningful consultation, particularly in smaller organisations. 

There was clearer agreement that the threshold should not exceed 1,000 redundancies, as this was described as too high to provide effective employee protection. Overall, employers emphasised the importance of striking the right balance between meaningful employee engagement and maintaining organisational flexibility.

Section 3- The government’s proposed approach 

This section asked for views on the government’s two preferred approaches for setting the new organisation‑wide threshold: Method one – A single fixed number for all employers and method three - Tiered fixed numbers that vary according to employer size. 

Key findings:

Employers generally supported the government’s preferred approach of a single fixed threshold, as they felt that it offers clarity and consistency and is easier to apply in practice. However, concerns were raised that a ‘one size fits all’ approach may not reflect the wide variation in organisational size across the NHS, with a risk that thresholds could be too low for larger employers and too high for smaller ones.

There was strong agreement that clear guidance will be critical to ensure consistent implementation, particularly around scope and organisational structures, and that while collective consultation can increase administrative burden, it remains an important tool for supporting fairness, transparency and effective decision‑making.

Further information:

• Read the government's consultation in full.