A Protective Award is an award of compensation of up to 90 days' gross pay that can be awarded by an Employment Tribunal for failure by an employer to follow the correct procedure when making redundancies.
Our Employment Solicitors have successfully brought legal action on behalf of former employees of businesses placed in to administration including BHS (retail) Multiyork (furniture), Vertu (mobile phones) and Pulse Flexible Packaging. We are currently working on claims for former employees of Thomas Cook, Mothercare, J Rotherham Masonry, Tomlinsons Dairies, FlyBMI and others.
If you are interested in making a Protective Award claim against your former employer, contact our Employment Solicitors for free initial legal advice.
Specialist Protective Awards Solicitors
Simpson Millar 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. 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.
We 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 Protective Award Claim against BHS
The links below to The Times and Guardian newspapers are amongst others setting out details of our successful claim against BHS as JWK Solicitors, now part of Simpson Millar.
For free legal advice on making a claim get in touch with our Employment Solicitors.
More Information on Protective Award Claims
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 and if no such representatives have been elected then with the employees 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.
What is a 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 £525 (subject to an annual increase). This means that in effect, each employee is guaranteed up to approximately £4,200 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.
Time Limit for Making a Proactive Award Claim
There are very strict time limits for bringing these claims. These claims must 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.
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