Redundancy without consultation: protective award of 90 days' pay
A former employee won a protective award of 90 days' pay after his employer made him redundant without any consultation. The company was in administration and did not attend the hearing.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant withdrew his unfair dismissal claim.
- The respondent failed to comply with section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992.
- The tribunal made a protective award of 90 days' remuneration.
- The respondent was in administration and did not attend the hearing.
Timeline
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Hearing and judgment
The tribunal heard the case by video and issued a judgment. The claimant withdrew his unfair dismissal claim. The tribunal found the respondent failed to consult under section 188 and made a protective award of 90 days' pay.
The legal issue
The tribunal had to decide whether the employer had failed to consult the employee about proposed redundancies as required by law, and if so, what protective award (compensation for the failure) should be made.
The outcome
The tribunal decided that the respondent, Mold Systems EU Limited (In Administration), had failed to comply with its legal duty to consult the claimant about his redundancy. The company did not attend the hearing and was in administration.
As a result, the tribunal made a protective award of 90 days' pay. This means the claimant is entitled to be paid for 90 days from the date of the judgment (29 November 2023) as compensation for the lack of consultation.
The claimant had also brought an unfair dismissal claim, but withdrew it at the hearing.
Lessons & takeaways
- Employers must consult employees before making them redundant, even if the company is in financial difficulty.
- A protective award can be made for up to 90 days' pay if there is a complete failure to consult.
- Employees can bring a claim for failure to consult even if they withdraw an unfair dismissal claim.
- The tribunal can proceed with a hearing even if the employer does not attend.
What this case shows
This case is a stark reminder that the duty to consult employees about redundancy is a legal requirement that cannot be ignored, even when a company is in administration. The former employee was made redundant without any consultation process, leaving him with no opportunity to discuss alternatives or challenge the decision.
What the employer could have done differently
Mold Systems EU Limited could have avoided this protective award by simply engaging in a consultation process with the employee before making him redundant. Even if the company's financial situation was dire, a basic consultation — explaining the reasons, considering alternatives, and giving the employee a chance to respond — would have satisfied the legal obligation. By failing to do so, the company now faces a liability for 90 days' pay.
Why this matters
This case highlights that protective awards are not just for large-scale redundancies; they apply to individual dismissals too. The fact that the company was in administration and did not attend the hearing did not prevent the tribunal from making an award. For employees facing redundancy, this case shows that the law provides a remedy when employers cut corners on consultation.
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