A Protective Award is a form of compensation awarded to employees in situations where an employer makes more than 20 employees redundant without collectively informing or consulting the employees about the redundancy.
There is a legal obligation for employers to consult with employee representatives before redundancies are made. Where there has been a failure to do this, a claim may be brought in the Employment Tribunal.
If you wish to bring a Protective Award Claim there is a three month time limit.
How much is the Protective Award?
A protective award is payable to each of the affected employees and can be up to a maximum of 90 days’ gross pay in a redundancy situation and is at the Employment Tribunal’s discretion.
The amount awarded may be reduced if the employer engaged in some form of consultation with the employees.
Am I eligible?
You may be eligible if you have been dismissed or are about to be dismissed as redundant and your employer has failed to adequately inform and consult with you.
A claim must either be made before or within three months of the date which the last dismissal takes place. However, before a claim can be submitted to an Employment Tribunal claimants must first obtain an Early Conciliation Certificate which confirms that they engaged in the Early Conciliation process through ACAS. It is therefore important to take steps as soon as possible.
What happens if my employer is insolvent and an award is made?
If the employer is insolvent, the employee can apply for payment out of the National Insurance Fund. The National Insurance Fund can pay up to a maximum of 8 weeks’ pay, capped at £525 per week (this figure is correct at August 2019).
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