Former Staff Get Protective Award of £4,200 Each
A Protective Award Case Study - Clients Situation
Our clients worked in a factory. They arrived for work as usual one Monday morning and were called, along with all the other staff members, to a meeting by the management team.
They were told to go home for the day and advised to come back into work the next day.
When they arrived back at work the following day, they were met by Administrators rather than the management team. The Administrators told them to all go home as the business was insolvent and that they were no longer employed.
In total, 25 employees lost their jobs.
How We Helped
Five of the employees who worked in the factory contacted our Employment Law Solicitors and spoke with one of our Employment Law experts about their situation.
We explained to them that they could immediately ask for their notice pay, any unpaid wages and any unpaid holiday. This would help with their financial situation straight away. We also advised the five employees, that if they’d been employed for more than 2 years, they could also ask for statutory redundancy pay.
A member of our Employment team also informed them that they could make a Protective Award claim for up to 90 days’ pay. There is no minimum length of service requirement so all of the five staff members could make the claim.
The only criteria in place to make a Protective Award claim are:
- That 20 or more staff were made redundant in one location
- That the correct consultation or notice for redundancy did not take place.
These criteria were met by our five clients, as 25 staff were made redundant at the factory where they worked and no redundancy consultation or notice period took place because the company suddenly stopped trading because of insolvency.
To receive payment of a Protective Award, you need to have a judgment from an Employment Tribunal which either includes your job title or more specifically your name.
None of the workers, in this case, had Trade Union representation so had to either make the claim themselves or get legal advice from an Employment Law Solicitor. We represented five of the factory staff and prepared their Protective Award claim ready for the Employment Tribunal.
The Judge at the Employment Tribunal decided the outcome of the claim on the written submissions made by us on behalf of his five clients. This meant they did not have to give evidence at a Final Hearing.
A judgement was made for all five staff members to receive the full eight-week Protective Award, resulting in each individual getting £4,200 guaranteed by the Insolvency Service.
The five clients were each represented on a No Win, No Fee basis, which meant that their legal costs were paid by the other side.
The additional money that getting the Protective Award brought in was very welcome after tough financial times and each of the five clients was extremely pleased.
Throughout the Protective Award claims process, all five clients had a real advantage over colleagues who didn’t use a specialist Employment Solicitor who understood the procedures and kept on top of the Administrators throughout the case.
Successful Protective Award Cases
Our Employment Lawyers have successfully represented former employees of businesses placed in to administration including Monarch Airlines, BHS (retail) Multiyork (furniture), Vertu (mobile phones) and Pulse Flexible Packaging.
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Simpson Millar Solicitors are a national law firm with over 500 staff and offices in Billingham, Bristol, Cardiff, Catterick, Lancaster, Leeds, Liverpool, London and Manchester.