Failed to consult before mass redundancy: 8 weeks' protective award for employees
Blitz Communications failed to consult employees before making 20+ redundancies. The tribunal approved a protective award of 8 weeks' gross pay for each affected worker.
1 min read · Last updated 18 May 2026
Case details
- #protective-award
- #failure-to-consult
- #redundancy
- #collective-redundancy
- #insolvency
- #consent-order
Key facts
- Blitz Communications proposed to dismiss 20 or more employees as redundant from multiple sites.
- The company was placed into voluntary liquidation on 7 September 2020.
- Blitz Communications failed to begin consultation at least 30 days before the first dismissal on 17 August 2020.
- The requirements for election of employee representatives were not complied with.
- The parties agreed to a protective award of 8 weeks' gross pay for each claimant.
- All other claims against Blitz Communications and the Secretary of State were withdrawn.
Timeline
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First dismissals take effect
Blitz Communications ceased trading and dismissed employees as redundant.
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Company enters voluntary liquidation
Blitz Communications was placed into voluntary liquidation under section 84 of the Insolvency Act 1986.
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Judgment by consent
The Employment Tribunal issued a judgment by consent, making a protective award of 8 weeks' gross pay to each claimant.
The legal issue
Whether Blitz Communications complied with its duty under section 188 of TULR(C)A to consult employee representatives before proposing 20 or more redundancies within 90 days.
The outcome
The tribunal issued a judgment by consent, declaring that Blitz Communications failed to comply with its consultation duties. A protective award of 8 weeks' gross pay was made for each claimant.
- Protective award: 8 weeks' gross pay per claimant (total amount not specified)
- No other compensation awarded as other claims were withdrawn
Lessons & takeaways
- Employers proposing 20 or more redundancies within 90 days must start consultation at least 30 days before the first dismissal.
- Failure to elect employee representatives for consultation is a breach of the law, even if the company is facing insolvency.
- A protective award can be made by consent, saving the cost of a full hearing, and can cover up to 90 days' pay.
What this case shows
When Blitz Communications Ltd decided to cease trading and dismiss all employees in August 2020, it failed to consult with employee representatives as required by law. The company proposed to make 20 or more employees redundant from multiple sites, triggering the collective redundancy consultation obligations under section 188 of TULR(C)A. However, no consultation began at least 30 days before the first dismissal, and no employee representatives were elected.
What could have been done differently
Even in financial difficulty, employers must still follow the statutory consultation process. Starting consultation earlier and electing representatives could have reduced or avoided the protective award. The parties agreed to settle the claim by consent, with an 8-week protective award, rather than litigating the full extent of the breach.
Why this matters
This case shows that tribunals will enforce consultation duties even when a company is insolvent. Employees who are not consulted before mass redundancies can claim a protective award, which is a sum of up to 90 days' gross pay. The award here was limited to 8 weeks due to the company's financial position, but it still provides a remedy for the failure to involve workers in the process.
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