How Much Can You Claim for a Protective Award?

If you've been made redundant and your employer didn't follow the right steps, you might be wondering about something called a Protective Award. Specifically, you might be asking, "How much can I claim?" Let's delve into this topic and make it simple and clear.

First, let's recap what a Protective Award is

It's a special payment that can be made to employees in the UK when their company hasn't properly followed the rules before laying off a lot of people at once. In short, if the company didn't hold a meeting, called a "collective consultation," with the employees or their representatives before making 20 or more people redundant within 90 days at the same place, they've broken the rules. In such a case, you may be able to claim a Protective Award.

So, how much can you claim?

Well, the amount that can be claimed as a Protective Award can be up to 90 days' gross pay per employee. The actual amount is decided by an Employment Tribunal, which is a special court that handles work-related disputes. They consider a bunch of different things when deciding the amount, such as how seriously the employer broke the rules and how this affected the employees.

It's important to note that the 90 days' pay can be a lot of money, but there's a cap (or limit) on how much you can get. This cap is set by the government and can change from year to year. If you were made redundant on or after 6 April 2023, your weekly pay is capped at £643. If you were made redundant before 6 April 2023, these amounts will be lower.

Another thing to remember is that you can claim a Protective Award even if you've found another job during the 90 days period. It's not about replacing lost wages; it's about compensating for the fact that the employer didn't follow the rules.

One more point to consider is that if the company has gone bust and can't pay, you might still be able to get some money. In this situation, you could apply to the government's Redundancy Payments Office (RPO) for up to 8 weeks of the Protective Award at the capped rate.

Claiming a Protective Award might seem complicated, but you're not alone. There are people who can help, such as legal advisers or employees' support groups. It's always a good idea to get some advice if you're thinking of making a claim.

Conclusion

A Protective Award is a way for employees to get compensation when their employer hasn't done the right thing during large-scale redundancies. The amount you can claim depends on various factors.  There are a few rules and limits to bear in mind. But if you think you might be eligible, it's definitely worth exploring. After all, it's about making sure that employees are treated fairly, even in tough times.