Everyday I work in an area of employment law that not many people know about. 95% of my Instagram followers had never heard of it and wanted to know more. So that has inspired today’s blog post.
What is the area that I’m discussing? Protective award claims.
I process protective award claims every single day in its various elements, and it is an area of law that is so relevant at the minute due to the struggling economy and the rise of online business.
In simple terms, when a company goes into administration suddenly and their employees are then made redundant (often with immediate effect), then there has been a failure by the employer to consult the employees in relation to the redundancy so long as 20 or more employees were made redundant at the establishment. This is contrary to the Trade Union and Labour Relations (Consolidation) Act 1992.
So, there has been a statutory breach, and the company has gone into administration, but what does that mean for the employees? They can bring a protective award claim.
The protective award claim goes through the usual processes of an Employment Tribunal claim. ACAS Early Conciliation should still be gone through (although it usually ends straight away as the company is in administration), and ET1 lodged with the employment tribunal, and eventually going to hearing.
If it is found that there has been a failure to consult- and in my experience, Protective Award claims are very positive for claimants, then a payment is made to claimants from the state fund through the insolvency service. This can be the equivalent of up to eight weeks pay for a claimant.
This is an area of law that I had no knowledge of prior to starting my current role (aside from a bit of interview prep for my current job), but has been so interesting to handle on a day to day basis!