Why protective awards are important in times of uncertainty
The Trump tariffs will undoubtedly have a ripple effect in businesses all over the UK and economic uncertainly often comes hand in hand with administrations and redundances.
Increase in insolvencies
Business Advisory group Interpath say they expect to see an increase in insolvencies as SME’s cope with volatility in the marketplace and the shockwaves of US economic protectionism means that the storm clouds are gathering after months of fair skies.
“The ripple effect of tariffs on trading could affect UK companies, many of whom are already fully stretched and may potentially lead to redundancy,” said Partner and Employment Law Solicitor, Alan Lewis.
“With market leaders predicting a notable rise in administration levels in sectors such as industrial manufacturing and the automotive industry this summer it’s going to be a tough time, but perhaps also a time remind employees of their rights to protective awards when they are facing redundancy every pound counts.”
Failure to follow the collective redundancy process
If employers have not followed the correct procedures when making staff redundant then employees can claim a Protective Award, but many are not are aware of the potential to claim.
A Protective Award is an award of compensation of up to 90 days’ gross pay, (being increased to 180 days in the Employment Rights Bill) This payment can be awarded by an Employment Tribunal when an employer fails to collectively inform and consult its workforce when making twenty or more employees from the same establishment redundant.
Protective award claims
Alan Lewis, who is a specialist employment solicitor, has championed the rights of hundreds of employees and helped them claim Protective Awards when they have been made redundant.
“This potential doubling of the award is a great benefit to those facing redundancy where 20 or more employees are being made redundant at the same establishment. It will also act as a greater deterrent to those employers who flout the rules on collective redundancies, but forewarned is always forearmed for business owners,” said Alan.
“Employers should always follow the correct procedures and if in doubt check with a HR specialist and employment solicitor.”
How can we help?
Pearson Solicitors specialise in helping redundant employees make a claim. For legal advice on making a protective award claim contact our employment law solicitors on 0161 785 3500 or email enquiries@pearsonlegal.co.uk
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