How companies should prepare for redundancies in 2026: Omar Ghaffoor
Redundancies have remained prominent in business news over the last 12 months. Between 2020 and 2025, more than two million jobs were reportedly placed at risk through proposed collective redundancies notified to the Government. However, 2025 saw the highest number of redundancy warnings since the pandemic, and recent data suggests 2026 could be even more challenging.
Over recent years, Brexit-related disruption, geopolitical uncertainty, increased operating costs and wider economic pressures have significantly affected UK businesses. These pressures have contributed to employers restructuring, relocating operations, reducing headcount or, in some cases, ceasing to trade altogether.
A Freedom of Information request filed by The Liquidation Centre reportedly found that 315,605 jobs were flagged as being at risk of redundancy in 2025, representing a 45% increase since 2021. Redundancy payments were also reported to have totalled £477,709,323 for the year. In the first two months of 2026, 736 employers had already submitted proposed redundancy notifications, placing 56,396 jobs at risk, reportedly 9% higher than the comparable period in 2025.
The number of HR1 advance redundancy notification forms submitted to the Government in February 2026 was 430. This is broadly comparable with the number filed in February shortly before the peak of the financial crisis.
Based on historical trends, The Liquidation Centre estimates that 2026 could see as many as 327,227 redundancy warnings, which would be 11,622 more jobs placed at risk than in 2025.
Against this background, it is increasingly important that employers follow a legally compliant redundancy process. Where an employer proposes to dismiss as redundant 20 or more employees at one establishment within 90 days or less, collective consultation obligations are likely to be triggered. Consultation must begin at least 30 days before the first dismissal takes effect, rising to at least 45 days where 100 or more redundancies are proposed.
Employers must also submit the HR1 notification within the required timescale and consult with recognised trade unions or elected employee representatives, where applicable. Failure to comply with collective consultation obligations can result in a protective award. Under the Employment Rights Act 2025, from 6 April 2026, the maximum protective award increased from 90 days’ pay to 180 days’ pay per affected employee, substantially increasing employers’ potential financial exposure.
We are currently speaking to many companies seeking redundancy policy reviews, practical guidance and training. We are also seeing an increase in employers needing support in defending employment tribunal claims, including unfair dismissal claims arising from redundancy processes.
We are often asked whether artificial intelligence is responsible for these trends. In some cases, AI is a contributing factor, but it is not the sole driver. Its most visible impact has been in limiting the creation of new roles and disrupting junior and entry-level positions, particularly those which historically provided essential early-career experience. In the meantime we are recommending companies to revisit their redundancy policies, ensure they are compliant with the changes in the Employment Rights Act, and that they plan ahead.
Omar Ghaffoor is an associate solicitor at Robinson Ralph