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KembaraXtra – Legal Terms – Protective Award
A protective award is an award made by an employment tribunal requiring an employer to continue paying wages to employees for a specified “protected period” where the employer has failed to comply with statutory consultation obligations during collective redundancies. These obligations are set out in the Trade Union and Labour Relations (Consolidation) Act 1992. The purpose of the award is not simply to compensate employees for financial loss but also to penalize employers who ignore consultation duties. Before making large-scale redundancies, employers are generally required to consult employee representatives and provide relevant information within the required time limits. Failure to do so may lead to a tribunal imposing a protective award for a period of up to 90 days.
The tribunal determines the length of the protected period according to what is “just and equitable” in light of the seriousness of the employer’s default. During the protected period, each affected employee is entitled to receive one week’s pay for every week covered by the award. If the employer fails to make the required payments, the employee may file a complaint with the employment tribunal within three months. The case of Susie Radin Ltd v GMB confirmed the tribunal’s authority to enforce payment obligations under a protective award. Protective awards therefore play an important role in safeguarding employees’ collective rights during redundancy situations and encouraging employers to follow fair consultation procedures.
A protective award is an award made by an employment tribunal requiring an employer to continue paying wages to employees for a specified “protected period” where the employer has failed to comply with statutory consultation obligations during collective redundancies. These obligations are set out in the Trade Union and Labour Relations (Consolidation) Act 1992. The purpose of the award is not simply to compensate employees for financial loss but also to penalize employers who ignore consultation duties. Before making large-scale redundancies, employers are generally required to consult employee representatives and provide relevant information within the required time limits. Failure to do so may lead to a tribunal imposing a protective award for a period of up to 90 days.
The tribunal determines the length of the protected period according to what is “just and equitable” in light of the seriousness of the employer’s default. During the protected period, each affected employee is entitled to receive one week’s pay for every week covered by the award. If the employer fails to make the required payments, the employee may file a complaint with the employment tribunal within three months. The case of Susie Radin Ltd v GMB confirmed the tribunal’s authority to enforce payment obligations under a protective award. Protective awards therefore play an important role in safeguarding employees’ collective rights during redundancy situations and encouraging employers to follow fair consultation procedures.
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