Redundancy Consultation Rules for Employers in Glasgow

Glasgow’s economy continues to evolve, with businesses in finance, manufacturing, hospitality, creative industries, logistics, and renewables facing periodic restructuring, site consolidations, or economic pressures. When redundancies become necessary, getting the consultation process right is critical. Failure to comply can lead to significant financial penalties, unfair dismissal claims, and reputational damage in a tight-knit business community.

At Employment Law Services (ELS) LTD, we help Glasgow employers navigate redundancy processes with compliant, practical policies and procedures. This guide outlines the current redundancy consultation rules in 2026, highlights recent and upcoming changes, raises key questions for local businesses, and explains why robust documentation is essential.

Current Redundancy Consultation Requirements

UK employment law (which applies in Scotland) distinguishes between individual and collective redundancies. The core principles remain fairness, transparency, and genuine consultation.

Individual Redundancies (fewer than 20 employees at one establishment): Employers must still follow a fair procedure for each affected employee. This includes:

Warning the employee.
Consulting meaningfully about the proposal.
Considering alternatives to redundancy.
Applying fair, objective selection criteria.
Offering suitable alternative employment where possible.

Even small-scale redundancies in Glasgow businesses can lead to tribunal claims if the process lacks fairness.

Collective Redundancies (20 or more employees at one establishment within a 90-day period): Employers have additional statutory duties under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA). These include:

Informing and consulting appropriate representatives (trade union or elected employee representatives).
Starting consultation “in good time”, at least 30 days before the first dismissal for 20–99 redundancies, or 45 days for 100+.
Notifying the Secretary of State via Form HR1.
Discussing ways to avoid, reduce, or mitigate the impact of redundancies.

Key 2026 Change – Increased Protective Awards From 6 April 2026, the maximum protective award for failing to comply with collective consultation obligations has doubled from 90 days’ pay to 180 days’ gross pay per affected employee. This uncapped penalty applies to dismissals taking effect on or after that date and significantly raises the financial risk for non-compliance.

Upcoming 2027 Changes, The Employment Rights Act 2025 introduces an additional organisation-wide threshold for collective consultation (expected in 2027). This will apply alongside the existing “one establishment” rule. A government consultation (closing May 2025) is considering thresholds between 250–1,000 redundancies across the entire business. Employers with multiple sites in Glasgow or beyond should prepare for broader obligations.

Current Redundancy Consultation Requirements

Why Consultation Matters in Glasgow

Glasgow employers often operate across multiple locations, from city-centre offices to industrial estates or retail units. Misjudging whether the “one establishment” test applies (or will soon be supplemented by the organisation-wide test) can prove costly. Tribunals in Scotland scrutinise procedures carefully, with appeals going to the Court of Session.

Common pitfalls for local businesses include:

Treating consultation as a mere formality.
Failing to provide sufficient information to representatives.
Not considering alternatives seriously.
Inadequate record-keeping.

Important questions for your Glasgow business:

Do you have a clear trigger process to identify when collective consultation is required?
Are your managers trained to handle both individual and collective processes?
How would your business cope with a potential 180-day protective award per employee?
Have you reviewed contracts and policies for multi-site operations?

The Individual Consultation Process – High-Level Overview

A fair individual redundancy process typically involves:

Providing written information about the reasons for redundancy.
Holding at least one (often two) consultation meetings.
Allowing the employee to be accompanied.
Genuinely considering their suggestions.
Documenting every step thoroughly.

Selection criteria must be objective and consistently applied (e.g., skills, performance, length of service). You must also explore suitable alternative vacancies across the organisation.

Questions to consider:

Does your redundancy policy include standard selection matrices and appeal mechanisms?
Are you confident your process would demonstrate genuine consultation if challenged?

Collective Consultation – What Employers Must Get Right

When the threshold is met, consultation must be with appropriate representatives and cover:

Reasons for the proposals.
Numbers and categories of employees affected.
Proposed selection methods.
Ways to avoid or reduce redundancies.
Mitigation measures, including redundancy payments.

Consultation must be meaningful, not just ticking boxes. Failure here triggers the protective award risk.

Key reflective questions:

Do you have pre-elected employee representatives or a process to elect them quickly?
Is your HR team prepared to produce the required information packs and HR1 form?
How do you ensure consistency across Glasgow sites or departments?

Record-Keeping and Appeals

Strong documentation is your best protection. Keep detailed notes of all meetings, information shared, and decisions made. Employees (or representatives) should have a right to appeal redundancy decisions.

In Scotland, tribunals often place weight on oral evidence, making contemporaneous notes particularly valuable.

The Cost of Getting It Wrong

A protective award of up to 180 days’ pay per employee, plus potential unfair dismissal compensation (with awards potentially increasing due to other 2026/2027 reforms), legal fees, management time, and reputational harm can be devastating, especially for SMEs in Glasgow’s competitive economy.

Collective Consultation – What Employers Must Get Right

Strengthening Your Redundancy Processes

Redundancy situations are stressful and complex. Having clear, up-to-date policies helps managers act confidently and consistently while minimising legal exposure.

At Employment Law Service, our policies and procedures service includes:

Tailored redundancy policies and guidance reflecting 2026 changes.
Template letters, consultation scripts, selection criteria, and risk assessment tools.
Manager briefing documents and training support.
Comprehensive packages covering disciplinary, performance, sickness, and restructuring procedures.
Regular updates to keep your documents compliant with evolving law, including the 2027 organisation-wide threshold.

We understand the realities of running a business in Glasgow, whether you’re a growing tech firm, a hospitality operator, or a manufacturing business on the Clyde.

Conclusion: Prepare Now for Redundancy Compliance

Redundancy consultation rules in 2026 carry higher stakes than ever, with doubled penalties and further changes on the horizon. Glasgow employers cannot afford to rely on outdated templates or ad-hoc approaches.

Ask yourself:

When was the last time your redundancy policy was reviewed?
Are your processes robust enough to withstand tribunal scrutiny and the new 180-day protective award?
Do you have the documentation and guidance needed to manage restructuring confidently?

Don’t wait until a redundancy situation arises. Proactive preparation protects your business, your people, and your reputation.

Contact the team at Employment Law Services (ELS) LTD today to discuss how our policies and procedures service can strengthen your redundancy and restructuring framework.