221 workers win maximum protective award after redundancy without any consultation
A tribunal has awarded 221 former employees of SP Group Ltd a protective award of 90 days' pay after the company made them redundant without any collective consultation when it went into administration.
1 min read · Last updated 18 May 2026
Case details
Key facts
- SP Group Ltd entered administration on 24 July 2018 and dismissed 193 employees immediately.
- The company did not recognise a trade union or have employee representatives for consultation.
- No collective consultation was undertaken before the redundancies.
- The tribunal found that all 221 claimants were assigned to the same establishment (Head Office in Redditch).
- The protective award was set at 90 days, the maximum permitted, due to the complete failure to consult.
Timeline
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Decision to close business
The decision to close the business was taken at some point between April and July 2018.
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Administration and first dismissals
SP Group Ltd entered administration and 193 employees were dismissed immediately.
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Further dismissals
Another 103 employees were dismissed on 31 July 2018.
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First hearing
Employment Judge Choudry heard the protective award claim at Birmingham Employment Tribunal.
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Protective award judgment
Employment Judge Choudry issued a judgment awarding a protective award of 90 days from 24 July 2018.
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Enforcement proceedings issued
Claimants issued enforcement proceedings for underpayment of protective award and other sums.
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Dismissal against SP Group
Proceedings against SP Group were formally dismissed as the company had been dissolved.
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Second hearing
Employment Judge Kenward heard claims for underpayment of protective award, redundancy, notice, and holiday pay against the Secretary of State.
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Judgment on underpayments
Employment Judge Kenward issued a judgment ordering the Secretary of State to pay various underpayments to five claimants.
The legal issue
Whether the employer was required to consult collectively before making 20 or more employees redundant, and if so, what protective award should be made for the complete failure to consult.
The outcome
The tribunal upheld the protective award claim for all 221 claimants, finding that SP Group Ltd had a duty to consult collectively but did not do so at all. The protective period was set at 90 days, the maximum allowed, starting from 24 July 2018.
Compensation:
- Protective award: 90 days' pay per claimant (amounts vary by individual)
- No other damages awarded in this judgment (other claims were stayed or dealt with separately)
Lessons & takeaways
- Employers must consult collectively before making 20 or more employees redundant, even if the company is facing financial difficulties or entering administration.
- Where there is no recognised trade union, employers must still elect employee representatives for consultation purposes.
- A complete failure to consult will almost certainly result in the maximum protective award of 90 days' pay.
- Employees can bring protective award claims even if their employer has gone into administration, though enforcement may be against the Secretary of State if the employer is dissolved.
What this case shows in practice
When SP Group Ltd entered administration in July 2018, it dismissed 193 employees immediately, with a further 103 going a week later. The company did not consult with any employee representatives before making these redundancies. The tribunal found this was a complete failure to comply with the legal duty to consult collectively under section 188 of TULCRA.
The case demonstrates that the duty to consult is not optional, even when a company is in financial distress. The tribunal noted that the decision to close the business was taken between April and July 2018, giving the employer time to begin consultation before the administration.
What the losing side could have done differently
SP Group Ltd could have elected employee representatives (since there was no recognised union) and consulted with them about ways to avoid or reduce the redundancies. Even if the outcome would have been the same, the consultation process itself is a legal requirement. The complete absence of any consultation meant the tribunal had no choice but to impose the maximum protective award of 90 days.
Why the result matters for similar claims
This case confirms that protective awards are available even when the employer has entered administration. It also shows that tribunals will treat a total failure to consult as a serious breach, warranting the maximum award. For employees in similar situations, it is important to bring a protective award claim promptly, as enforcement may later need to be pursued against the Secretary of State if the employer is dissolved.
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