{"id":282010,"date":"2026-05-25T15:23:00","date_gmt":"2026-05-25T15:23:00","guid":{"rendered":"https:\/\/dominiclevent.com\/blog\/?p=282010"},"modified":"2026-05-25T16:21:49","modified_gmt":"2026-05-25T16:21:49","slug":"redundancy-reforms-could-hit-firms-with-perpetual-bureaucracy","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/redundancy-reforms-could-hit-firms-with-perpetual-bureaucracy\/","title":{"rendered":"Redundancy reforms could hit firms with \u2018perpetual\u2019 bureaucracy"},"content":{"rendered":"\n<div id=\"\">\n<header class=\"article-header \"><time class=\"date-time__time\" datetime=\"2026-05-25T13:21:20+01:00\"><br \/>\nMonday 25 May 2026 1:21 pm <\/time><\/header>\n<p><!-- Ads Injected --><\/p>\n<p>The government has been warned against law changes on collective redundancy which businesses say could swamp bosses in more costs and bureaucracy.<\/p>\n<p>As part of Labour\u2019s <a href=\"https:\/\/www.cityam.com\/people-and-organizations\/employment-rights-act\/\" target=\"_blank\" rel=\"noopener noreferrer\">Employment Rights Act<\/a>, the government is set to require businesses to undertake a consultation of the entire firm whenever they make a certain number of redundancies.<\/p>\n<p>Under existing rules, businesses are only required to launch consultations at the specific site where redundancies are made, if 20 or more staff are sacked within a 90-day period.<\/p>\n<p>But business leaders have warned that organisation-wide redundancy consultations could prove costly and time consuming and are likely to be triggered frequently, leaving firms in a state of \u201cperpetual consultation\u201d.<\/p>\n<p>The government has been considering the number of redundancies at which it will set its threshold, in a <a href=\"https:\/\/www.gov.uk\/government\/consultations\/make-work-pay-threshold-for-triggering-collective-redundancy-obligations\" target=\"_blank\" rel=\"noopener noreferrer\">review<\/a> which closed last week.<\/p>\n<p>A threshold of anywhere between 250 and 1,000 redundancies is on the table, as well as a percentage-based approach linked to employer size.<\/p>\n<p>It is understood that a number of major retailers submitted to the government\u2019s review, sharing their concerns that a low threshold could lead to huge costs and complex bureaucracy.<\/p>\n<h2 id=\"h-firms-warn-of-unnecessary-bureaucracy\" class=\"wp-block-heading\">Firms warn of \u2018unnecessary bureaucracy\u2019<\/h2>\n<p>The British Retail Consortium (BRC), an industry trade body, told <em>City AM<\/em> that redundancies are \u201cunavoidable\u201d in the retail industry, which is the UK\u2019s biggest private sector employer.<\/p>\n<p>Employers already go beyond their legal obligations to engage directly with employees and consult at individual and site levels when making redundancies, the BRC said.<\/p>\n<aside class=\"read-more read-more--has-media read-more-auto\">\n<div class=\"read-more__content\">\n<h5 class=\"read-more__label\">Read more<\/h5>\n<h4 class=\"read-more__title\"><a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/businesses-brace-for-more-layoffs-as-redundancy-warnings-climb-to-post-pandemic-high\/\" target=\"_blank\" rel=\"noopener noreferrer\">Businesses brace for more layoffs as redundancy warnings climb to post-Pandemic high<\/a><\/h4>\n<\/div>\n<\/aside>\n<p>Helen Dickinson, the BRC\u2019s chief executive, said: \u201cWhen consultation is triggered across separate parts of a national business, it can create anxiety and uncertainty for employees whose roles are not at risk.<\/p>\n<p>\u201cA fixed threshold of 1,000 redundancies would help keep consultation focused on meaningful engagement with employees, rather than creating unnecessary bureaucracy that diverts time and resources away from local and individual support.\u201d<\/p>\n<p>The Confederation of British Industry (CBI), the UK\u2019s leading industry group, also urged the government to make the threshold for consultation as high as possible.<\/p>\n<h2 id=\"h-perpetual-collective-consultation\" class=\"wp-block-heading\">\u2018Perpetual collective consultation\u2019<\/h2>\n<p>Matthew Percival, the CBI\u2019s work and skills director, told <em>City AM<\/em>: \u201cProposals to change redundancy rules risk piling extra cost and complexity onto businesses at an already difficult time.<\/p>\n<p>\u201cIf designed the wrong way, they could put large businesses in a costly state of perpetual collective consultation, thereby undermining the value of the process and making it harder for firms to invest, grow and create jobs.\u201d<\/p>\n<p>A government spokesperson said: \u201cIt\u2019s only right that workers have a voice in redundancy processes. However, under current rules some employees do not.<\/p>\n<p>\u201cWe are currently examining the responses and detail to change this and thank everyone who has responded to our consultation. This will help employers retain skilled workers and reduce the risk of costly disputes.\u201d<\/p>\n<p>The government has recently faced pressure over its incoming guaranteed hours rules, which are also a part of its employment rights reforms.<\/p>\n<p>Labour was <a href=\"https:\/\/www.cityam.com\/guaranteed-hours-rules-would-threaten-jobs-government-warned\/\" target=\"_blank\" rel=\"noopener noreferrer\">told<\/a> by leading industry bodies last month that it risks spiking unemployment and blocking young peoples\u2019 routes into work if it cracks down on zero-hour contracts.<\/p>\n<aside class=\"read-more read-more--has-media read-more-auto\">\n<div class=\"read-more__content\">\n<h5 class=\"read-more__label\">Read more<\/h5>\n<h4 class=\"read-more__title\"><a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/kpmg-faces-staff-uproar-as-job-cuts-expose-communication-breakdown\/\" target=\"_blank\" rel=\"noopener noreferrer\">KPMG faces staff uproar as job cuts expose communication breakdown<\/a><\/h4>\n<\/div>\n<\/aside>\n<footer class=\"article-footer \">\n<div class=\"tags-collection article-footer__tags-collection\">\n<h2 class=\"screen-reader-text\">Similarly tagged content:<\/h2>\n<nav class=\"tags \">\n<h3 class=\"tags__title\">Sections<\/h3>\n<\/nav>\n<nav class=\"tags \">\n<h3 class=\"tags__title\">Categories<\/h3>\n<\/nav>\n<nav class=\"tags \">\n<h3 class=\"tags__title\">People &amp; Organisations<\/h3>\n<\/nav>\n<\/div>\n<\/footer>\n<\/div>\n\n<p><a href=\"https:\/\/www.cityam.com\/collective-redundancy-reforms-could-saddle-firms-with-perpetual-bureaucracy\/\">Source link <\/a><br \/>\n<a href=\"https:\/\/dominiclevent.com\/contact-us\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-14\" src=\"https:\/\/dominiclevent.com\/blog\/wp-content\/uploads\/2017\/01\/footer-300x100.png\" alt=\"\" width=\"600\" height=\"200\" srcset=\"https:\/\/dominiclevent.com\/blog\/wp-content\/uploads\/2017\/01\/footer-300x100.png 300w, https:\/\/dominiclevent.com\/blog\/wp-content\/uploads\/2017\/01\/footer-150x50.png 150w, https:\/\/dominiclevent.com\/blog\/wp-content\/uploads\/2017\/01\/footer.png 600w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p><center><iframe loading=\"lazy\" src=\"https:\/\/www.google.com\/maps\/d\/u\/1\/embed?mid=1w4tN9mf5kVdBXUXTq2KvwE23NmpUzEna\" width=\"640\" height=\"480\"><\/iframe><\/center>&nbsp;<\/p>\n<p><center><iframe loading=\"lazy\" style=\"border: 0px #ffffff none;\" src=\"https:\/\/calendar.google.com\/calendar\/embed?src=sc635csnrm8h9s9lq0cad6vkss@group.calendar.google.com\" name=\"myiFrame\" width=\"600px\" height=\"3px\" frameborder=\"1\" marginwidth=\"0px\" marginheight=\"0px\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/center>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div>\n<div><img decoding=\"async\" src=\"http:\/\/www.dominiclevent.com\/wp-content\/uploads\/2018\/06\/Business_Solicitors_London.jpg\" width=\"600\" \/><\/div>\n<p>&nbsp;<\/p>\n<div>Dominic Levent Solicitors<\/div>\n<div>Email: Enquiries@dominiclevent.com<\/div>\n<div>Phone: 020 8347 6640<\/div>\n<div>Url: https:\/\/www.dominiclevent.com<\/div>\n<div style=\"display: none;\">cash, check, credit card, invoice<\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div>\n<div>1345 High Rd<\/div>\n<div>London, London N20 9HR<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Monday 25 May 2026 1:21 pm The government has been warned against law changes on collective redundancy which businesses say could swamp bosses in more costs and bureaucracy. As part of Labour\u2019s Employment Rights Act, the government is set to require businesses to undertake a consultation of the entire firm whenever they make a certain &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/dominiclevent.com\/blog\/redundancy-reforms-could-hit-firms-with-perpetual-bureaucracy\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Redundancy reforms could hit firms with \u2018perpetual\u2019 bureaucracy&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":282020,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-282010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news1","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Redundancy reforms could hit firms with \u2018perpetual\u2019 bureaucracy - Dominic Levent Solicitors Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dominiclevent.com\/blog\/redundancy-reforms-could-hit-firms-with-perpetual-bureaucracy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Redundancy reforms could hit firms with \u2018perpetual\u2019 bureaucracy - Dominic Levent Solicitors Blog\" \/>\n<meta property=\"og:description\" content=\"Monday 25 May 2026 1:21 pm The government has been warned against law changes on collective redundancy which businesses say could swamp bosses in more costs and bureaucracy. 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