Employment law insights
Collective Consultation - Protective Award – Doubled
When an employer intends to make 20 or more employees redundant within a 90‑day period at one establishment, it is legally required to consult with employee representatives for at least 30 days (or 45 days if at least 100 redundancies are proposed) before serving notice.
If an employer fails to meet these obligations, employees (or their representatives) may bring a claim in the employment tribunal for a ‘protective award’ of up to 90 days’ gross pay per affected employee. In cases of “fire and rehire”, this amount may be increased by up to 25% if the employer has failed to comply with the Statutory Code of Practice on Dismissal and Re‑engagement.
From 6 April 2026, the maximum protective award will be doubled from 90 days’ to 180 days’ pay per affected employee.
Until now, plenty of employers have deliberately flouted the collective consultation rules and have been willing to pay departing employees a further three months’ pay in compensation; whether this practice will persist as the cost rises to almost six months’ pay remains to be seen.