The 20‑Employee Rule: A Play‑by‑Play for Redundancy
Long ago the Trade Union Labour Relations (Consolidation) Act 1992—commonly known as TULRA—threw a big red flag over any plans to scrap more than 20 jobs from the same place. If a business slashed two dozen or more roles, it had to sit down with the whole workforce (or the trade union / employee reps) and talk it out. Skipping that step handed the unlucky people a 12‑week pay ball.
Fast forward to today, and a fresh tribunal ruling has turned that rule on its head. When a shop brings a bunch of staff to the brink of redundancy, it doesn’t matter if they’re spread across a whole city or tucked into a single shop. The word “at one establishment” is now ignored, so the company must consult collectively before any cuts.
Why the change?
- TULRA aimed to mirror an EU Directive that didn’t mention “one establishment”, so UK employees got a less generous deal than their continental cousins.
- With the tribunal’s new reading, the protection is now on equal footing.
Checklist for the Redundancy Roller‑Coaster
- 100+ people out? Call the recognised union or employee reps for at least 45 days before the changes hit.
- 21–99 people? Make sure you get their input for a minimum of 30 days ahead.
- Below 20? Talk to each person on their own. Let them bring a union rep or colleague if they want.
- Tell the gov? Fill out the HR1 form whenever more than 20 staff are affected (just print it out, no link needed!).
- Try another route first. Make a game plan: can you keep the workforce in another role? Can you cut fewer jobs? Or maybe shift some responsibilities?
- Get the facts to the reps.
- What’s the business reason for the cuts?
- How many, and who?
- Any bias checks? (No sexism, racism, age, disability, religion or sexual‑orientation filtering.)
- Which training or redeployment options are on the table?
- How will you calculate extra pay beyond statutory redundancy?
- Share the details. Either hand them over during a meeting or mail them (or fax, if you’re old‑school). For union reps, send a copy to their head office.
- Remember four weeks. Each employee gets a trial period to test any new role.
When you tick all these boxes, you’re not just doing the law—you’re showing you care enough to do it right.
Feeling the pressure? Need a hand?
Our team at Three‑DOM Solutions is ready to help you steer through the maze of redundancy regulations. Drop us a line or find us on Twitter. We’ll give you the inside scoop and keep your business—and your staff—safe.