Protective Awards for employees
Under Section 188 of the Trade Union & Labour Relations (Consolidation) Act 1992, companies are obliged to collectively consult with Trade Unions / with a recognised Trade Union or employer representatives before any decisions regarding redundancies can be taken. Where the employer proposes dismissing as redundant between 20 and 99 employees the consultation period should last for 30 days and where it proposes dismissing as redundant 100 or more employees, the consultation period is 45 days. If the employer fails to collectively consult the compensation is up to 90 days’ gross pay.
The Protective Award
This award is known as the “Protective Award” and is subject to deductions in respect of tax and National Insurance and any benefits received by the employees concerned over that period of time during which the employer should have consulted.
Where the company is in Administration, the National Insurance Fund guarantees payment of the Protective Award of up to 8 weeks’ pay, but the National Insurance Fund does cap a weeks pay for these purposes at £489*. This means that in effect, each employee is guaranteed up to approximately £3,900 from the National Insurance Fund. However in order to claim the value of the Protective Award, employees concerned must have an Employment Tribunal judgement in their favour.
Specialist Protective Awards Solicitors
We at JWK specialise in obtaining these Employment Tribunal judgements and obtaining payments from the National Insurance Fund for the employees concerned. We usually bring these claims on a no win-no fee basis. This means that our fees are paid out of the damages received by the employees. There are usually 'Tribunal Issue and Hearing fees' and also Counsel’s fees which are payable by the Employees, but these can be shared equally amongst employees bringing the claim. Any further sums due to you can be registered as a debt against the company.
Whilst we act on a no win-no win fee basis, in the event that for some reason the claim is unsuccessful, employees do not have to pay a penny. There is therefore no downside to instructing us to bring these claims as they do not require any financial commitment from our clients.
It is important to note that even employees who have not been employed for up to two years and therefore not eligible for redundancy payment are able to join in these claims.
JWK specialise in obtaining Protective Awards for employees who have been made redundant and where the employer has failed to follow its collective consultation obligations.
Our successful claim against BHS
Please see the links below to The Times and Guardian newspapers amongst others setting out details of our successful claim against BHS.
Interested in bringing a claim against your former employer?
If you are interested in bringing a claim against your former employer for a Protective Award, please fill out and submit to us your details on the form below.
Would you please note that there are very strict time limits for bringing these claims. These claims have to be brought within three months less one day of the date of your dismissal and there is a great deal of work to be done to prepare the case and lodge it at an Employment Tribunal so please do contact us as soon as possible. If you have any queries please contact Carl Moran of JWK Solicitors, firstname.lastname@example.org, 01524 598337.
*this is subject to an annual increase.
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Craig obtained an LLB Honours degree at Leicester and moved to Chester Law School to complete his solicitors final examination. He joined Jobling & Knape in September 1987 as... Read more
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