What is a Protective Award for Redundancy?
Unfortunately, redundancies are becoming increasingly common, not least in light of the end of the furlough scheme, but they are not always handled properly by employers. Employers should only make redundancies if there is a genuine redundancy situation and after following careful consultation and procedural requirements.
If an employer is making 20 or more employees redundant at one workplace this is known as ‘collective redundancy’, and it must then inform and hold collective consultation with representatives of the affected employees before making any redundancies. That process must commence at least 30 days before the first of the dismissals if between 20 and 99 are made redundant and must commence at least 45 days before the first of the dismissals if there are 100 or more. In this scenario, if employees are made redundant without information and prior collective consultation, they could be entitled to make a Protective Award Claim against their employer.
In this article, our specialist Employment Solicitors explain what a protective award for redundancy is.
What is a Protective Award?
A Protective Award is an award of compensation where the employer fails to properly inform and engage in consultation about those redundancies, as described above.
There is a duty to discuss with representatives ways of avoiding redundancies, reducing the numbers and mitigating the consequences, with a view to reaching agreement with those representatives.
Protective Award Claims Explained
When an employer fails to inform and consult each affected employee could claim up to a maximum of 90 days’ pay by pursuing a Protective Award Claim.
If representatives are appointed or there is a recognised trade union, then the representatives must pursue the claim on the employees’ behalf.
A claim must be made in the Employment Tribunal. There is no automatic entitlement to a Protective Award. There is no minimum length of service required to make a Protective Award claim.
If redundancies occur because the employer has become insolvent and ceases trading, the Government’s Insolvency Service will pay some of the Protective Award compensation out of the national insurance fund. Such payments are capped at a maximum of 8 weeks’ pay, with a week’s pay currently limited to £544.
How to make a Protective Award Claim?
If you and at least 19 other employees at your place of work have been made redundant you could be eligible to make a claim. You can check if you’re eligible by using our redundancy protective award eligibility checker or by calling 033 3344 9603 to speak to member of our specialist employment team.
The time limit to pursue protective award claims are short. You have only 3 months (less 1 day) from the date you were made redundant to make your Protective Award Claim, subject to any extension which may be achieved through correct use of the ACAS Early Conciliation process. If you think you might be entitled to pursue a Protective Award Claim, you should therefore seek professional advice early.
Experienced Employment Law Solicitors
Morrish Solicitors is a long-established law firm based in West Yorkshire, with a national presence. We provide a variety of employment law services to private clients, Unions, Associations, professional bodies and their members across the UK. Our team of experienced employment solicitors can advise on every aspect of employment law.
Over the years, we have built an outstanding reputation representing individuals impacted by problems at work. Our team are national experts in Protective Award claims. We have secured millions of pounds of compensation for thousands of employees:
- Over 1,500 former Thomas Cook Head Office employees in London, Manchester and Peterborough secured the maximum Protective Award of 90 days’ pay.
- 260 former CityLink employees were each awarded 90 days’ pay.
- We’ve also successfully settled other large Protective Award Claims including Phones4u, 3AAA, Poundworld, Turners Fine Foods, Sash UK Ltd, Austin Reed and others.
When making a Protective Award Claim, it is beneficial to have a specialist employment solicitor on your side. These types of claims can be extremely complex and are not widely understood, making the chances of a positive outcome much higher if you use one of our experienced solicitors.
If you’d like to discuss a potential Protective Award Claim with a member of our employment team, please call us on 033 3344 9603 or simply email [email protected] with your request.
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