Protective Award Claims

A Protective Award claim is a legal remedy available to employees when their employer fails to comply with legal obligations during redundancy processes, such as not consulting the workforce or their representatives adequately. This award is intended to compensate affected employees for the lack of proper consultation, potentially granting them up to 90 days’ pay.

You and your colleagues will need a solicitor to assist in receiving the maximum compensation amount you’re entitled to.

What is a protective award?

Under the Trade Union and Labour Relations (Consolidation) Act 1992, there is a duty upon an employer to consult with employee representatives in circumstances where the employer contemplates making redundant 20 or more employees from the same establishment within a rolling 90 day period.

Where an employer fails in this duty, the affected employees can bring a claim for what is known as a protective award. The amount awarded will be up to 90 days’ pay, capped at the statutory rates of pay. Often a tribunal will award the full 90 days’ pay unless there is a reason to award a lesser of sum.

We find that we have often instructed by groups of employees to bring claims for protective awards in circumstances where their employee has become insolvent and ceased trading without any notice being given.

If 20 or more people based at the same establishment lose their jobs as a result of the business becoming insolvent or closing down altogether, unless the employer has carried out consultation with employee representatives or trade unions starting at least 30 days before the first redundancy took effect, the employees will have claims for a protective award.

How to make a protective award claim?

You can bring a claim to an employment tribunal, ideally as a group action with your work colleagues.  If you are a trade union member, your union is likely to assist with this, but if, like many employees, you are not, you can ask a solicitor if they will act for you on a no win no fee basis.

How long does a protective award claim take?

Much will depend on whether the employer is still solvent and tries to defend the claim. If the employer is in liquidation or administration, it is likely that the liquidator or administrator will not contest the claim, unless it has evidence that the consultation provisions were complied with.

This will mean that some cases can result in a judgment being awarded to the claimants without a contested hearing. Even then, it is likely to be a number of months from the date when the claim is lodged until the date when the employees recover their monies from the Redundancy Payments Office.