What is a Protective Award and am I entitled to one?
So, what is a protective award and am I entitled to one? Our specialist employment solicitors explain what is a protective award and what makes you eligible for one.
What is a Protective Award?
A protective award is an award of compensation made to employees in two scenarios:
- Where 20 or more employees are made redundant at a single workplace and the employer fails to properly inform and engage in consultation about those redundancies; and
- Where employees are transferred from one company to another and the employer fails to properly inform and engage in consultation about that transfer.
In both cases, the legal duty on employers is to consult with employee representatives before the redundancies are made or the transfer occurs.
Where employers have breached this duty, a claim can be brought in the Employment Tribunals.
How Much is a Protective Award?
The amount of protective award (payable to each affected employee) can be up to 90 days’ pay in cases of redundancy or 13 weeks’ pay in cases involving transfers of employment.
Am I Eligible to Make a Protective Award Claim?
There is no minimum length of service required to bring Protective Award claims. The claims must, however, be commenced within 3 months (less 1 day) from:
1. The date of dismissal (in collective redundancy situations); or
2. The date of the TUPE transfer (in TUPE transfer situations).
To bring a Protective Award claim an employee must first enter into Early Conciliation via ACAS. As long as it is done correctly, this has the effect of extending the 3 months (less 1 day) time limit. However, the length of the extension varies, depending when Early Conciliation is entered into and how long it lasts. As such, it is always wise to seek legal advice well in advance of the initial 3-month (less 1 day) time limit.
What if my Employer is Insolvent?
If an employee is made redundant because the employer becomes insolvent the government’s Insolvency Service may be obliged to pay the Protective Award. However, they will only pay up to a maximum of 8 weeks’ pay, capped at £544* per week from April 2021.
Specialist Protective Award Solicitors
Our friendly and professional Employment Solicitors are experts in this protective award claims, having successfully pursued thousands of claims in the past and having recovered millions in compensation for those affected.
Over the years, we have successfully brought group protective award claims against many companies, including household names such as:
- Thomas Cook – Up to 1,500 former employees could claim as much as £4,200 from the Insolvency Service.
- Brass Agency – We secured maximum amount of compensation for former employees of Brass Agency in Leeds.
- Phones4U – Successfully secured protective award claims for over 100 former Phones 4U employees who were made redundant without consultation when the company went into administration.
- City Link – Over 250 City Link employees were awarded 90 days’ pay after they were made redundant without consultation.
- Bardsley Construction – After a lengthy legal battle, we successfully secured 90 days’ pay for over 80 employees who were made redundant without consultation.
As specialists in protective award claims, we provide you with a free initial assessment to evaluate your potential claim.
If you have a viable claim, we could act under a “damages-based agreement”, which means you only pay legal costs at the end of the case, from compensation recovered. If your case is unsuccessful, you pay nothing.
These types of claims are complex. In cases of insolvency, permission is legally required (either by the insolvency practitioners or a Court) to pursue a claim. Both the ACAS EC and the Tribunal process is fraught with pitfalls and procedures, which if not followed, can result in a claim being struck out. Claims are often defended, taking up to 12 months to conclude. Using the expertise of Morrish Solicitors gives you the best chance of a successful and speedy resolution to your claim.
If you’d like to discuss a protective award claim and employment rights, please call our specialist employment solicitors on 033 3344 9603 or simply email [email protected] with your request.
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