Protective Awards in Collective Redundancy Cases

When an employer in England and Wales proposes collective redundancies - typically where 20 or more employees at one establishment face dismissal within a 90‑day period - the law imposes a strict obligation to consult with employee representatives or a recognised union. Where this statutory collective consultation duty is breached, employees or their representatives can bring a claim to an employment tribunal for a protective award. A protective award is a form of compensation specifically intended to penalise the employer's failure to consult properly and to reflect the seriousness of that failure. This article explains what protective awards are, when they arise, how they are calculated, legal processes, time limits, recent and forthcoming changes, and practical steps for claimants and employers.

What Is a Protective Award?

A protective award is a penalty awarded by an employment tribunal under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) when an employer does not comply with statutory collective redundancy consultation obligations. It is not compensation for personal loss like lost earnings, but a remedy that reflects the employer's default in failing to inform and consult affected employees or their representatives before dismissals take effect.

Protective awards encourage employers to meet their legal duties and ensure employees are properly included in discussions about redundancy proposals, alternatives and mitigating measures.

When Protective Awards Arise

Collective Redundancy Thresholds

Protective awards arise where an employer is proposing to dismiss 20 or more employees at one workplace (an “establishment”) within a 90‑day period and fails to consult properly with appropriate representatives. A recognised trade union is normally the first point of consultation; where no union exists, employees can elect representatives for this purpose.

Consultation must begin in good time and meet statutory minimum periods:

• 30 days before the first dismissal where 20–99 redundancies are proposed.
• 45 days where 100 or more redundancies are proposed.

Failing to start and complete consultation before notice of redundancy is given can trigger a protective award claim.

Purpose and Nature of Protective Awards

Protective awards are intended as a penalty on the employer rather than to compensate for individual economic loss. They reflect the failure to consult rather than the financial loss suffered by each employee. As such, tribunals generally focus on the seriousness of the employer's default rather than the direct impact on individual claimants.

Tribunals may start with a maximum award and reduce it only where mitigating circumstances exist, such as where the employer genuinely attempted to engage meaningfully but did not meet technical requirements.

How Protective Awards Are Calculated

Protected Period

A protective award is calculated based on a protected period, which generally starts on the date of the first redundancy dismissal or the date of the tribunal award, whichever is earlier, and continues for as long as the tribunal considers just in all the circumstances. The amount is calculated on a week's gross pay per employee per week of the protected period.

A tribunal determines the length of the protected period, having regard to the employer's failure to consult and the statutory requirements that were breached. There is no statutory offset against other sums paid (such as notice pay) for the purposes of the protective award.

Maximum Award

Historically, the maximum protective award a tribunal could make was 90 days' pay per affected employee. This means that tribunals could award up to 90 weeks' worth of each employee's basic pay, distributed over the protected period. However, forthcoming legal changes will significantly alter this.

From 6 April 2026, the maximum protective award is set to increase to 180 days' pay per employee, reflecting government reform aimed at strengthening protections for employees in collective redundancy situations. Tribunal discretion remains to award less than the maximum where appropriate.

Adjustments for Code Failures

Since 20 January 2025, a tribunal may also increase or reduce a protective award by up to 25 per cent if a party has unreasonably failed to follow the statutory Code of Practice on Dismissal and Re‑engagement or another relevant statutory code. This reflects recent legislative amendments to TULRCA 1992 and applies where the conduct of either party during the redundancy process falls outside the expected standards of a statutory code.

Who Can Claim and Time Limits

Claimants

Protective award claims can be brought by:

• A recognised trade union representing affected employees.
• Elected employee representatives where no union exists.
• In certain circumstances, individual employees themselves if there are no representatives.

Unlike many other employment claims, there is no qualifying period of continuous service for protective awards, meaning employees with any length of service can be covered.

Time Limits

A protective award claim must normally be presented to an employment tribunal within three months less one day from the date on which the last of the redundancies in the group takes effect. Missing this deadline can result in the tribunal refusing to hear the claim unless exceptional circumstances apply.

Employer Defences and Exceptional Circumstances

An employer can argue that it was not reasonably practicable to comply with consultation requirements in rare and genuinely unexpected situations. For example, if an employer suddenly and unexpectedly becomes insolvent, a tribunal may accept this as a “special circumstance” defence, although the employer must still have informed and consulted as much as reasonably possible in the circumstances. These defences are tightly construed and only succeed in exceptional cases.

Practical Steps for Claimants

1. Determine Eligibility

Review whether collective consultation obligations applied - were 20 or more employees proposed for redundancy within 90 days at the same establishment? If so, protective award rights likely arise if consultation did not occur or was inadequate.

2. Collect Evidence

Gather documentation that shows whether the employer disclosed proposals, timetables, meeting minutes, correspondence with representatives and any attempts at meaningful consultation. Written records are vital for tribunal proceedings.

3. Consider Representation

Trade unions or elected representatives often lead protective award claims on behalf of affected employees. In other cases, groups of individuals may bring joint or individual claims.

4. Respect Time Limits

Calculate the three‑month window from the date of the last dismissal and ensure any claim is notified within that period. Tribunals will strictly enforce this deadline.

5. Seek Early Advice

Employment law advisers, solicitors or organisations such as Acas and Citizens Advice can help clarify rights, prepare documentation and support claimants through tribunal procedures.

Impact of Legal Changes

The forthcoming increase in the maximum protective award from 90 to 180 days' pay per employee from April 2026 will significantly enhance the deterrent effect of protective awards and increase potential compensation where consultation duties are breached. This change, as part of broader reforms to collective redundancy law, underscores the importance of strict compliance with consultation requirements by employers planning large‑scale redundancies.

Key Takeaways

Protective awards are a statutory remedy available in collective redundancy cases where an employer fails to meet its consultation obligations under UK law. An employment tribunal may order an employer to pay compensation based on a protected period, calculated as a week's gross pay for each week up to the tribunal's determined length, historically up to 90 days' pay per employee, but rising to 180 days' pay from April 2026. Tribunals may adjust awards by up to 25 per cent where codes of practice are breached. Protective award claims do not require a minimum length of service and must be lodged within three months less one day of the last redundancy. Proper preparation, evidence collection and attention to deadlines are essential for claimants asserting their rights.