Protective award for redundant employees

More than 20 former employees of a Norfolk-based printing company will receive compensation after an employment tribunal found they were made redundant without adequate collective consultation.

The tribunal ruled that the company breached its obligations under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992.

Affected workers were awarded a 90-day protective award, covering employees who were dismissed as redundant on or after 26 June 2025. The maximum award for employers that fail to consult on collective redundancies has since increased to 180 days’ pay following the introduction of the Employment Rights Act in April this year.

The company employed 44 staff before entering administration and more than 20 former employees, supported by a trade union, brought claims after losing their jobs when the business collapsed.

The tribunal found that at least 20 employees at the Norwich site were made redundant, or placed at risk of redundancy, within a 90-day period ending on 26 June 2025. Employers proposing 20 or more redundancies within a 90-day period are required to consult appropriate employee representatives under collective redundancy rules. However, the tribunal concluded that employees were dismissed without “any, or any adequate, consultation having taken place”.

As the company is insolvent, compensation due to the claimants will be paid by the secretary of state for business and trade, who was named in the proceedings as the statutory guarantor. Upholding the claim, the tribunal ordered remuneration for a protected period of 90 days beginning on 26 June 2025.

The judgment noted that the company, which was already in administration, had not filed a response to the claim. Explaining why the maximum award was appropriate, the judgment stated: “There is no reason to depart from the principle that protective awards are punitive and should be for the maximum period unless there are circumstances making it just not to do so.”

Since changes introduced under the Employment Rights Act took effect on 6 April, employers face a significantly higher financial risk if they fail to collectively consult, with the maximum protective award increasing to 180 days’ pay for each affected employee. Should you wish to discuss a redundancy process contact 121 HR Solutions at enquiries@121hrsolutions.co.uk.

Protective award for redundant employees

121 HR Solutions Ltd