Failure to consult before redundancies leads to 90-day protective award
Former employees of Orthios (Anglesey) Technologies Ltd won a protective award after the company failed to consult them before making redundancies. The tribunal awarded 90 days' pay.
1 min read · Last updated 18 May 2026
Case details
- #protective-award
- #redundancy
- #failure-to-consult
- #establishment
- #employee-representatives
Key facts
- The first respondent's premises constituted an establishment under section 188 of TULR(C)A 1992.
- There was no recognised trade union or elected employee representatives at the establishment.
- The first respondent failed to comply with the consultation requirements of section 188.
- The tribunal made a protective award of 90 days' remuneration for the claimants.
Timeline
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Establishment and representation findings
The tribunal found that the first respondent's premises constituted an establishment and that there were no recognised trade union or employee representatives.
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Protected period begins
The protective award period of 90 days begins.
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Hearing and judgment
The tribunal heard the case and issued a judgment upholding the claimants' complaints and making a protective award.
The legal issue
The tribunal had to decide whether the company's premises constituted an 'establishment' under the law, and whether it had complied with its duty to consult employees or their representatives before proposing redundancies.
The outcome
The tribunal found that the company's premises were an establishment and that there were no recognised trade union or elected employee representatives. The company had failed to consult the employees about the proposed redundancies, breaching section 188 of TULR(C)A 1992.
A protective award of 90 days' remuneration was made, meaning the former employees are entitled to pay for the protected period starting 31 March 2022. The amount of the award will be calculated based on each employee's gross weekly pay.
Lessons & takeaways
- Employers must consult with recognised trade unions or elected employee representatives before making 20 or more redundancies at one establishment.
- If there are no representatives, the employer must arrange for elections to take place before consulting.
- Failure to consult can result in a protective award of up to 90 days' pay per affected employee.
- The definition of 'establishment' can include a single site, even if part of a larger organisation.
What this case shows
This case is a clear example of the consequences when an employer fails to follow the collective consultation rules. The former employees of Orthios (Anglesey) Technologies Ltd were made redundant without any prior consultation. The company had no recognised trade union and had not arranged for employee representatives to be elected. As a result, the employees were left without a voice in the process.
The tribunal found that the company's premises in Holyhead constituted an 'establishment' under the law, triggering the duty to consult. The company's failure to comply with section 188 of TULR(C)A 1992 meant that the employees' complaints were upheld.
What the employer could have done differently
The employer could have avoided this outcome by arranging for the election of employee representatives as soon as redundancies were proposed. Even if no union is recognised, the law requires employers to facilitate elections so that employees can choose who speaks for them. Consulting with those representatives about ways to avoid or reduce the redundancies, and about mitigating the impact, would have satisfied the legal requirements.
Why this matters
This case reinforces that the collective consultation obligations apply even when a company is in administration. The protective award of 90 days' pay is the maximum possible, reflecting the seriousness of the breach. For employees facing redundancy, it shows that the law provides a remedy when employers cut corners. For employers, it is a reminder that the consultation process is not optional.
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