90-day protective award for employees after company failed to consult on redundancies

This case demonstrates that even when a company enters administration, it cannot sidestep its legal duty to consult employees before making them redundant. Richmann Walsh Engineering Limited failed to comply with section 188 of TULRCA 1992, which requires employers to consult collectively when proposing to dismiss 20 or more employees at one establishment within a 90-day period.

The tribunal made a protective award of 90 days' remuneration for all affected employees, starting from 20 July 2022. This means the former workers are entitled to pay for that period, though any jobseeker's allowance or other benefits received during that time may be recouped by the Secretary of State.

What the employer could have done differently

Even in financial distress, the company could have initiated consultation with employee representatives or a trade union as soon as redundancies were proposed. The administrators should have been aware of the statutory obligations. By failing to do so, they exposed the company to a protective award that added to the liabilities.

Why this matters

This ruling reinforces that collective redundancy consultation is a fundamental right, not an optional extra. Employees whose employers ignore this duty can bring claims to an employment tribunal, and the tribunal can make awards even when the employer is in administration. The case also shows that tribunals can decide matters on paper if all parties consent, making the process more accessible for claimants.