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 the 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.
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 £508* per week.
*This figure will most likely be updated with effect from 6 April 2019.
Why use us?
We are experts in this field, having successfully pursued thousands of claims in the past and having recovered millions in compensation for those affected.
We have successfully brought group claims against many companies, including household names such as Phones4u, Maplin, Austin Reed and City Link. Others are ongoing.
We provide a free initial assessment.
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 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.
For further information on protective awards and other Employment Rights, please call our Employment Rights team on 033 3344 9603 or email firstname.lastname@example.org