Collective redundancies occur when a business proposes to end the employment contracts of 20 or more individuals within a 90-day period due to redundancy. In England, Wales, Scotland, and Northern Ireland, this triggers legal duties under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA), including the need to consult with representatives of affected individuals and notify the Secretary of State. This process ensures employees have input before redundancies are confirmed and helps identify alternatives. For businesses in the screen sector, these obligations are particularly relevant due to the industry's project-based, multi-site structure. 

These rules apply to all organisations proposing large-scale redundancies. For the screen sector, this includes examples such as studios, broadcasters, production houses, and affiliated creative businesses operating across England, Wales, Scotland, and Northern Ireland. Large businesses with multiple sites or subsidiaries, such as parent companies owning smaller, independent production companies, must be especially mindful of their consultation duties. 

Collective consultation rules do not apply if fewer than 20 employees are proposed to be made redundant within a 90-day period. Certain categories of workers, such as fixed-term contract individuals whose contracts naturally expire, may also be excluded from consultation triggers. However, even when collective consultation obligations are not triggered, best practice still recommends clear communication and individual consultation. 

The government has identified concerns with the existing “at one establishment” threshold, which allowed large businesses to spread redundancies across multiple locations and avoid triggering consultation requirements. This has raised fairness concerns for workers and risked undermining collective dialogue. Furthermore, the government aims to deter the misuse of ‘fire and rehire’ tactics, particularly in scenarios where changes to contracts could otherwise be imposed without adequate consultation. 

Deterring the misuse of 'fire and rehire' tactics benefits both workers and businesses by promoting trust and fairness. It ensures that contractual changes are made transparently and only when absolutely necessary, preventing sudden job insecurity and maintaining good working relationships. For the screen sector, where freelance and project-based work is common, these protections help safeguard industry stability, reduce reputational risks, and encourage more sustainable employment practices. 

• Removal of the strict establishment test: The Employment Rights Bill (ERB) proposes maintaining the current establishment-based trigger but introduces the potential for business-wide redundancy thresholds to be set by future regulations. 

• Increased protective awards: Failure to consult collectively could now result in protective awards of up to 180 days’ pay, doubling the previous cap. 

• Interim relief rights: Individuals may soon have the right to receive pay while awaiting tribunal outcomes in cases of protective award claims or fire-and-rehire dismissals. 

• Fire-and-rehire restrictions: Under clause 22 of the ERB, dismissals followed by re-engagement on new terms will be automatically unfair unless the business can prove serious financial necessity. 

• Future consultations: In 2025, the government is expected to consult on extending collective consultation periods for 100+ redundancies from 45 to 90 days. 

For screen sector businesses, particularly those employing a mix of permanent staff and individuals on short-term employment contracts, the proposed changes highlight the need for enhanced planning, detailed record-keeping, and proactive compliance. While genuinely self-employed freelancers may fall outside the scope of collective redundancy rules, businesses should still ensure clarity over employment status and maintain good communication practices to minimise legal and reputational risk.