Redundancy & Protective Awards
Ex-Thomas Cook workers could be in line for thousands of pounds of extra pay.
When a business goes into administration or liquidation employees have a right to claim monies owed to them by the company but how this is claimed depends largely on their status as creditors.
Claims can be made on the National Insurance Fund via the Redundancy Payments Service (RPS), usually in the following circumstances:
1) By employees made redundant within the first 14 days of administration;
2) By those who have lost their jobs on company liquidation;
3) By preferential creditors (members of staff) who were retained during the initial administration period, but who have been unable to claim all monies owed to them from the sale of business assets.
However, where there has been complete failure by the employer to consult with employees regarding their dismissal, you can still make a claim for an additional “Protective Award” even if your employer becomes insolvent, and the tribunal is likely to award a payment of 90 days’ pay to each employee.
What is a Protective Award?
A Protective Award is an award of compensation of up to 90 days’ gross pay, that can be awarded by an Employment Tribunal, for failure by your employer to collectively inform and consult you where you have been dismissed on the grounds of redundancy and the government’s National Insurance Fund would cover your award.
How to Make a Claim
If you are interested in making a Protective Award claim against your former employer, contact Employment Law Services (ELS) for free initial legal advice. There are very strict time limits for bringing these claims and they must be brought within three months less one day of the date of your dismissal so please contact us as soon as possible.