UK: Employment Rights Bill amendments published

UK government to double redundancy consultation penalties to 180 days' pay despite opposition, significantly increasing employer risk in collective dismissal processes

Key points: The UK government has published over 200 amendments to the Employment Rights Bill. The one that catches our attention doubles the penalties for failing to inform and consult on collective redundancies from 90 to 180 days' pay per affected employee

Why this matters: This dramatic increase in potential liability significantly raises the stakes for employers managing redundancy processes. The penalty applies to each impacted employee, including those who remain with the company, creating substantial financial risk.

What might happen next: The government may introduce further consultation requirements following trade union pressure. Additional guidance on legal requirements is promised, which could clarify obligations for complex redundancy situations.

What you should be doing: Review and strengthen your collective redundancy procedures immediately. Ensure proper documentation of consultation processes. Consider legal advice before attempting to "buy out" consultation or accommodate early release requests from employees.

ADDITIONAL INFORMATION:

Lewis Silkin LLP detailed analysis of all amendments 

We will have an update from Lewis Silkin LLP on how this Bill is progressing through parliament at our Summer Network Summit in Sitges, Barcelona in June.