Protective award for failure to consult before redundancy in liquidation
A former employee of Shaws (Cardiff) Limited won a protective award of £4,142.60 after the company failed to consult about redundancies before going into liquidation.
1 min read · Last updated 18 May 2026
Case details
- #protective-award
- #redundancy
- #failure-to-consult
- #liquidation
- #usdaw-representation
Key facts
- The respondent failed to consult the claimant about redundancies as required by section 188 of TULRCA.
- The claimant was employed by Shaws (Cardiff) Limited, which went into liquidation.
- The tribunal found a breach of the duty to consult collectively.
- A protective award of £4,142.60 was made for 90 days' pay.
Timeline
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Start of protected period
The protected period for the protective award begins.
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End of protected period
The protected period ends (original judgment incorrectly stated 2024, corrected to 2023).
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Hearing and judgment
The employment tribunal hearing took place remotely at Swansea, and judgment was issued finding a breach of section 188 TULRCA and awarding a protective award.
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Original judgment sent
The original judgment was sent to the parties.
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Certificate of correction
Employment Judge Povey corrected the protected period dates in the judgment.
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Corrected judgment sent
The corrected judgment was sent to the parties.
The legal issue
Whether the employer breached its duty to collectively consult the employee about proposed redundancies before the company entered liquidation.
The outcome
The tribunal decided that Shaws (Cardiff) Limited acted in breach of section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 by failing to consult the claimant about redundancies.
The key reason was that the employer did not engage in any collective consultation before making the claimant redundant, despite the legal requirement to do so when proposing to dismiss 20 or more employees at one establishment.
Compensation breakdown:
- Protective award: £4,142.60 (90 days' pay at £46.14 per day, based on a weekly wage of £323)
Lessons & takeaways
- Employers must consult collectively about redundancies even if the company is facing financial difficulties or liquidation.
- A protective award can be made for up to 90 days' pay when there is a complete failure to consult.
- Union representation can help employees pursue protective award claims without incurring legal costs.
- Liquidation does not automatically excuse an employer from its duty to consult under TULRCA.
This case shows that even when a company is heading into liquidation, it cannot simply bypass the legal duty to consult employees about redundancies. The former employee of Shaws (Cardiff) Limited was made redundant without any collective consultation, which the tribunal found to be a clear breach of section 188 of TULRCA.
What went wrong
The employer did not engage in any consultation process before the redundancies took effect. The company's liquidation did not absolve it of its obligations under employment law. The tribunal awarded a protective award of 90 days' pay, calculated at £4,142.60, reflecting the seriousness of the failure.
What could have been done differently
If the employer had consulted collectively, even in a compressed timeframe given the liquidation, it might have reduced or avoided the protective award. The tribunal noted that the duty to consult applies regardless of the company's financial health.
Why this matters
This case reinforces that protective awards are a remedy for employees who are denied their right to be consulted about redundancies. It also highlights that union representation can be effective in bringing such claims, as the claimant was represented by USDAW. For employees facing redundancy in a struggling company, this decision confirms that the law still protects their right to a voice in the process.
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