210 Staff Made Redundant Secured Protective Award of Eight Weeks Pay
A Protective Award Case Study - Client Situation
A large manufacturing company employed 350 staff at its premises in Bury and Saffron Waldon. The company became insolvent and immediately made 150 staff redundant. It kept 200 staff on to see if they could sell the business as a going concern.
It soon became clear that there were no interested parties in buying the business as a going concern so the company made the rest of the staff redundant at that point.
This left a total of 350 staff jobless, without any notice of their redundancy.
How We Helped
Stephen Pinder, Partner and specialist Employment Solicitor gave legal advice to a number of staff about what they could claim after losing their jobs.
He explained that they could make an initial claim for any statutory redundancy pay, statutory notice and any untaken holiday pay immediately. This money would help them through the initial financial worries of losing their job.
Stephen then explained that because more than 20 people had been made redundant in one location and they had not been consulted about redundancy correctly within the correct timelines, that they could make a Protective Award Claim.
A Protective Award Claim is paid by the Insolvency Service to staff who meet the criteria above. It is:
- More than 20 people made redundant in one location and
- They were not consulted properly or given the correct notice for their redundancy
Stephen Pinder represented 200 hourly paid shop floor workers, along with 10 staff who worked in the office.
Because they all worked at the same location, they were all eligible to make a Protective Award Claim. Even though some of them were made redundant in the initial wave and others when it became obvious the business could not be sold as an ongoing concern, they all made their Protective Award Claim together.
In order to make a Protective Claim from the Insolvency Service, the staff had to have a judgment from an Employment Tribunal.
Stephen Pinder completed all the necessary paperwork for the Employment Tribunal hearing within the three month deadline to make a claim and a hearing date was set.
Sometimes the Employment Tribunal will make a decision based on the papers submitted, but on this occasion, they required a hearing to decide.
They asked for evidence from the people who had been dismissed and Stephen Pinder represented them in the Employment Tribunal.
After the Employment Tribunal took the time to review the case and the evidence that was given by the workers, the Judge decided to award every worker who had submitted a claim the full entitlement under a Protective Award.
That meant that all 210 ex-employees of the large manufacturing company who made a claim were awarded £4,200 each by the Employment Tribunal.
Once they received the Judgment they could claim their Protective Award from the Insolvency Service.
Having the additional money awarded to them from the Employment Tribunal allowed them to have some financial benefit from losing their job in such an upsetting way.
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