United Kingdom · employment

How to Claim a Protective Award for Redundancy in the UK

When a UK employer cuts 20 or more staff at a single site without proper collective consultation, they breach statutory employment protections. Affected employees can claim a protective award of up to 90 days' gross pay through an Employment Tribunal. Even if the company collapses into insolvency or administration, the government's Redundancy Payments Service can step in to pay a statutory portion of the award.

The Law on Collective Redundancy and Protective Awards in the UK

Under Section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992), employers in the United Kingdom are legally obligated to consult appropriate representatives when proposing to dismiss 20 or more employees as redundant at one establishment within a 90-day period. This consultation must take place in good time before any notices are issued: at least 30 days before the first dismissal if 20 to 99 redundancies are proposed, and at least 45 days if 100 or more are proposed.

When an employer bypasses this process—often sacking an entire workforce overnight or running a sham consultation—the Employment Tribunal can make a protective award under Section 189 of TULR(C)A 1992. The maximum penalty is 90 days' gross actual pay for each affected employee. The award is punitive rather than compensatory, designed to penalise the employer's failure to consult rather than compensate strictly for financial loss (as affirmed in Susie Radin Ltd v GMB [2004] EWCA Civ 180).

Insolvency, Standing, and Government Payouts

A common tactic or crisis scenario involves companies dismissing staff immediately before or during insolvency. If an independent trade union is recognised for your bargaining unit, the union must bring the Section 189 claim on your behalf. If no union is recognised, elected employee representatives must bring it. However, where an employer failed to organise elections for representatives, affected employees can present tribunal claims individually or jointly.

If your employer is in administration, you must obtain written consent from the administrator or permission from the court under Schedule B1 of the Insolvency Act 1986 before filing an Employment Tribunal claim. If your employer has entered liquidation or cannot pay the judgment, the Redundancy Payments Service (RPS) will pay up to 8 weeks of the protective award out of the National Insurance Fund, subject to the statutory cap on weekly pay under Section 184 of the Employment Rights Act 1996.

Tribunal Deadlines and Preparing Your Case with Caunsel

You face an unforgiving limitation period: an Employment Tribunal claim must be initiated within 3 months less one day from the date on which the last dismissal took effect. Before lodging an ET1 claim form, you must notify Acas to commence Early Conciliation. Starting conciliation pauses the clock, but delay before contacting Acas can permanently extinguish your right to an award.

Navigating collective redundancy while facing sudden loss of income is overwhelming. You do not have to piece together evidence alone. You can use Caunsel to research collective redundancy rules, save your dismissal letters and communication logs into a structured digital case file, or connect directly with an independent employment solicitor to ensure your tribunal paperwork is compliant.

Steps

• Verify the redundancy threshold: Confirm that at least 20 employees were dismissed or proposed for dismissal within a 90-day window at your workplace establishment.
• Identify legal standing: Check whether a trade union or elected representative exists to file the claim; if the employer failed to invite elections, prepare to claim individually or form a collective group with colleagues.
• Obtain insolvency clearance if applicable: If the company is in administration, request formal written consent from the administrators under the Insolvency Act 1986 so your tribunal claim is not stayed.
• Notify Acas for Early Conciliation: Submit an Early Conciliation notification before the deadline of 3 months less one day from your dismissal date to obtain an Acas certificate.
• Submit your ET1 claim form: File the formal claim with the Employment Tribunal under Section 189 of TULR(C)A 1992 citing the complete lack or inadequacy of collective consultation.
• Claim via the Redundancy Payments Service (RPS): Once the tribunal issues a judgment, submit the judgment details and your RP1 form to the RPS to receive up to 8 weeks' statutory capped pay if the employer is insolvent.

Common mistakes

• Assuming insolvency halts your claim: Believing you cannot sue an insolvent company causes many workers to miss the strict 3-month tribunal window, forfeiting access to the government's National Insurance Fund payout.
• Missing the 3-month less one day deadline: Waiting for administrators to conclude winding up the business before contacting Acas often destroys tribunal jurisdiction entirely.
• Relying on individual redundancy consultation: Conflating an individual redundancy meeting with statutory collective consultation under Section 188 of TULR(C)A 1992.
• Proceeding against administrators without consent: Filing an ET1 against a company in administration without securing prior written consent or court leave under the Insolvency Act 1986, which can invalidate the filing.

Questions people ask

How much compensation can I get from a protective award?

An Employment Tribunal can award up to 90 days' gross actual pay per employee. If the employer is solvent, they must pay the full sum ordered. If the employer is insolvent, the government's Redundancy Payments Service pays up to 8 weeks, capped at the statutory weekly maximum in force at the time of dismissal.

Can I claim a protective award if I was employed for less than two years?

Yes. Unlike ordinary unfair dismissal and statutory redundancy pay, there is no minimum service requirement for a protective award. You qualify even if you were on your first day of work or still within a probationary period.

What happens if my union refuses or fails to bring the claim?

Under Section 189 of TULR(C)A 1992, if an independent trade union is recognised for your group, only the union has legal standing to bring the claim for those workers. If you are not in the recognised bargaining unit, or if no union was recognised and no reps were elected, individual employees retain the right to file.

Does getting a protective award reduce my statutory redundancy pay?

No. A protective award is paid in addition to statutory redundancy pay, statutory notice pay, and accrued untaken holiday pay. It is a separate penalty imposed for failing to consult.

General information only, last updated 2026-10-19. Caunsel is not a law firm and does not practise law. AI answers and this guide are not legal advice. Verify filings, deadlines, and statutes with a licensed lawyer in United Kingdom.