When making workforce redundancies, employers have to meet certain legal obligations, depending on factors such as the number of jobs that are at risk and the timeframe within which the redundancies will take place. In some cases, the employer may also be required to provide the Secretary of State advance notice of collective redundancies using the HR1 form (Advance Notification of Redundancies).
The following guide to the HR1 form looks at what this form is, and when and in what circumstances this form must be completed. We also look at the nature of the information that employers must provide in that form, and the costs involved, together with a look at what happens after filing a completed HR1 form and the employer’s ongoing obligations.
What is the HR1 form for redundancies?
The HR1 form, also known as the redundancy notification form, is a document mandated by the UK government. This is the required form that must be completed by employers in certain collective redundancy scenarios to notify the Secretary of State in advance of the proposed redundancies from the employer’s organisation. This requirement is set out under Chapter II of Part IV of the Trade Union and Labour Relations (Consolidation) Act 1992 which deals with the different procedures required for handling redundancies.
The purpose of the HR1 form is to provide the government, via the Insolvency Service’s Redundancy Payments Service (RPS) with advance notice of potential redundancies, where the government has its own statutory requirement to assist employees facing redundancy. The RPS, acting on behalf of the Secretary of State for Business and Trade, distributes the information collected to the appropriate government departments and agencies who are able to offer training and job brokering services to those affected by redundancy. During the redundancy consultation period, the employer will be contacted by their local Jobcentre Plus, together with other service providers in their local area, with offers of assistance.
The information provided by the employer about their organisation when completing the HR1 form is commercially confidential, where this data may only be used for the purpose of assisting those who may be facing redundancy. Any other government departments and agencies involved are also bound by the same confidentiality terms as the RPS.
When does the HR1 form need to be used?
The HR1 form must be used by employers in circumstances where 20 or more redundancies are planned within a 90-day period from a single establishment. These are the same criteria that trigger the requirement for an employer to follow the collective consultation rules, again set out under Chapter II of Part IV of the 1992 Act. This means that in multiple redundancy scenarios meeting this criteria, the employer must ensure that they discharge their legal obligations, both in notifying the RPS by completing the HR1 form, but also by engaging in a meaningful consultation process to explore alternative options.
In many cases, where collective consultation is designed to provide affected employees and their representatives with the opportunity to have their say and to make alternative suggestions, any suggestions made may help to identify ways to avoid or reduce redundancies. This can also help to mitigate the impact of redundancies on employees. In cases where all alternative options have already been fully explored by the employer, or are simply not viable, the assistance offered via the RPS should also be explored. In this way, those potentially facing redundancy should hopefully be given the help that they need to be able to secure employment elsewhere or to be assisted within their job search.
Who completes the HR1 form and when?
If the criteria for providing notification to the RPS of potential redundancies are met, it is the responsibility of the employer to complete the HR1 form. All employers are required by law to notify the RPS of any proposal to dismiss 20 or more employees as redundant at one establishment within a period of 90 days or less, where an establishment is the site where an employee is assigned to work. If the employer operates from more than one site, each one will be treated separately for notification (and consultation) purposes, where an HR1 form must be completed for each site where 20 or more redundancies are planned.
Where applicable, the minimum periods for notification (and consultation) are 30 days before the first dismissal for between 20 to 99 redundancies at a single establishment, and 45 days before the first dismissal for 100 or more redundancies at a single establishment. The employer must notify the RPS at least 30 or 45 days (depending on the number of dismissals) before the first dismissal and before issuing any individual notices of dismissal. The notification date will be the date on which the RPS receives the completed form.
The employer must also send a copy of the completed HR1 form to the appropriate representatives of the employees being consulted about the redundancies.
If the employer has already notified the RPS about one group of redundancies and they need to make further redundancies, these should be treated as separate events. This means that the employer does not need to add the numbers in two groups together to calculate the minimum period for either group, although employers must not deliberately stagger redundancies to avoid their notification and collective consultation obligations.
What information must be provided in the HR1 form?
The HR1 form is designed to capture key information about the proposed redundancies, including details about the establishment from which the redundancies are planned and those potentially affected. This data will allow the RPS to assess the scale and nature of the planned redundancies, and to allocate resources effectively, enabling them to provide appropriate guidance and support to assist affected employees in finding suitable alternative employment opportunities. Below we examine the different section headings as set out in the HR1 form, with the information requested under each section:
- Box 1- Employer’s details: this includes the employer’s name, registered address, postcode, any company or charity registration number, telephone number and email address.
- Box 2 – Employer’s contact details: this again requires the employer to provide their name, address (if different to above), postcode, telephone number and email address.
- Box 3 – Establishment where redundancies are proposed: the employer is asked here to confirm if the establishment from which the redundancies will be made is either the address at Box 1 or 2, or another address, including the postcode of that address.
- Box 4 – Timing of redundancies: this should include both the dates of the first and last proposed dismissals and, if the employer has given less than the required 30/45 day notification period as required under the rules, the reason(s) for their late notification.
- Box 5 – Method of selection for redundancy: where the employer will need to state how they propose to select employees for redundancy from the redundancy pool.
- Box 6 – Staff numbers/redundancies at this establishment: the employer can choose from various occupational groups, including manual, clerical, professional, managerial, technical, apprentices/trainees, under 18’s and other, stating the total number of employees and possible redundancies at that establishment falling into each group.
- Box 7 – Nature of main business – where the employer must provide the standard industrial classification (SIC) of economic activities, ie; the 4 digit-number identifying a very short description of the type of business the employer’s organisation is engaged in.
- Box 8 – Closure of the business: where the employer must indicate whether or not they propose to close the establishment from which the potential redundancies are planned.
- Box 9 – Reasons for redundancies: where the employer should tick one or more of the boxes provided to show the main reason(s) for the proposed redundancies, including lower demand for products or services; completion of all or part of contract; transfer of work to another site or employer; introduction of new technology/plant/machinery; changes in work methods or organisation; other (providing brief details); or insolvency.
- Box 10 – Consultation: where the employer must provide the name of any recognised trade union, as well as the name of any representatives and a description of the employees they represent. If the employer does not recognise a trade union for any groups of employees, they should instead give the name of any elected representatives, again with a description of the employees they represent. The employer should also indicate whether or not they have given a copy of the HR1 form to the appropriate trade union or employee representatives; whether or not they have started the consultation process with these representatives and, if so, the date consultation started; and whether or not they have yet given individual notices of dismissal to any employees.
- Box 11 – Declaration: here, the person responsible for completing the HR1 form must provide their name, position/role and the date that the form was completed, certifying that the information given on the form, so far as they know, is correct and complete.
All sections of the HR1 form must be completed by or on behalf of the employer and returned to HR1@insolvency.gov.uk, where the form will not be accepted if any information is missing. By completing the HR1 form accurately and in full, this can help to ensure a smooth and legally-compliant redundancy process. However, if the circumstances outlined in the HR1 form change after this has been submitted, the employer should notify the RPS.
Is there any fee to file the HR1 form with the RPS?
There is no fee to file the HR1 form, although the employer may benefit from securing legal advice at this stage, prior to completing this form and embarking on the collective consultation process, to help navigate what may be a challenging redundancy scenario.
Failing to file HR1 form
The statutory notification requirement placed on employers is key to the government meeting its own statutory requirement to assist employees facing redundancy. By indicating the number of employees who may be made redundant for example, this will allow the RPS to gauge the impact of the proposed redundancies, providing guidance and support accordingly. Equally, by providing a concise explanation for the redundancies and specifying the date when the first dismissal is expected to take effect, this will help the RPS to understand the circumstances surrounding the proposed redundancies and to assess the timeline, offering assistance to affected employees in advance of them losing their jobs.
The information to be provided by employers is therefore crucial to the government being able to offer help. As such, any failure by the employer to comply with this requirement, where applicable and without good cause, can result in criminal prosecution and an unlimited fine for the employer’s company and even for individual officers of that company.
If it is not reasonably practicable for the employer to comply with the minimum notification periods, they must still make every effort do so as far as they are able. The employer must also set out in their HR1 form why they were unable to provide the information on time.
What happens after filing the completed HR1 form?
The process of managing multiple redundancies can be complex, where it is important that employers follow the correct procedures, where applicable, including not only the statutory notification requirements, but also the collective consultation rules. These rules help to ensure that the redundancy process is fair, providing affected employees with the chance to have they say, either directly or via any trade union or elected employee representatives.
If an employer fails to follow the collective consultation rules, employees can make a claim to an employment tribunal. If the claim is successful — where it is only in rare cases that an employer can raise a special circumstances defence on the basis that it was not reasonably practical to collectively consult — the employer may have to pay what is known as a protective award of up to 90 days’ full pay for each affected employee. Any failure to follow these rules can also make any resulting dismissal by reason of redundancy unfair.
Need assistance?
Expert advice from an employment law specialist can help employers to carefully plan ahead and to effectively navigate redundancies without falling foul of the law. For specialist advice and support through the redundancy process, contact us.
HR1 Form FAQs
What is the purpose of the HR1 form?
There is a statutory requirement for the government to assist employees facing redundancy where, to do this, employers must notify the Secretary of State for Business and Trade of the potential redundancies, via the Redundancy Payments Service, using Form HR1.
What is a HR1 notice?
A HR1 notice refers to the form used to provide advance notification to the Secretary of State of potential redundancies. If 20 or more redundancies are planned within a 90-day period from a single establishment, a HR1 form is needed.
Is there a fee for a HR1 form?
There is no cost to file the HR1 form to provide the Redundancy Payments Service with advance notice of potential multiple redundancies from an organisation, although the employer may benefit from securing legal advice at this stage of the process.
How long does a HR1 form last?
The HR1 form will be valid for the proposed redundancies on that form. If the employer needs to make further redundancies, where they have already notified the Redundancy Payments Service about other redundancies, these should be treated as separate events.
Last updated: 21 February 2024
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
