Redundancy consultation failure leads to protective award for former employee
A former employee of Nationwide Accident Repair Services has been awarded a protective award of 90 days' pay after the company failed to consult properly on mass redundancies. His unfair dismissal claim was later struck out because the company was in administration.
1 min read · Last updated 18 May 2026
Key facts
- The claimant was employed at the Swinton site and dismissed by reason of redundancy on 4 September 2020.
- The respondent proposed to make 20 or more redundancies at the Swinton site but failed to fully inform and consult the claimant as required by s.188 TULRCA.
- A protective award was made on 1 December 2021 for a protected period of 90 days from 4 September 2020.
- The respondent company entered administration and the administrator consented only to the protective award claim proceeding, not the unfair dismissal claim.
- The unfair dismissal claim was stayed and later struck out because the claimant could not obtain permission to proceed.
Timeline
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Dismissal by reason of redundancy
The claimant was dismissed from his employment at the Swinton site.
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Claim presented
The claimant presented claims for unfair dismissal and a protective award.
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Tribunal explains stay
The Tribunal wrote to the claimant explaining that the unfair dismissal claim was stayed due to the administration.
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Protective award judgment
Employment Judge Dunlop made a protective award in favour of the claimant for 90 days from 4 September 2020.
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Opportunity to show cause
The Tribunal gave the claimant an opportunity to provide reasons why the unfair dismissal claim should not be struck out.
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Preferential creditor payment
The claimant was paid sums as a preferential creditor in the administration.
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Unsecured creditor payment
The claimant received a first and final distribution as an unsecured creditor.
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Administrators confirm payments
The administrators informed the Tribunal that the claimant had been paid in full.
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Unfair dismissal claim struck out
Employment Judge Dunlop struck out the unfair dismissal claim as it could not be actively pursued due to the stay.
The legal issue
The tribunal had to decide whether the employee was entitled to a protective award because the employer did not carry out proper collective consultation before making him redundant, and whether his unfair dismissal claim could continue despite the employer entering administration.
The outcome
The tribunal granted a protective award in favour of the employee, ordering the employer to pay remuneration for a protected period of 90 days from 4 September 2020. This was because the employer failed to fully inform and consult the employee as required by section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992, when proposing 20 or more redundancies at its Swinton site.
The employee's unfair dismissal claim was stayed when the company went into administration, and the administrator only consented to the protective award claim proceeding. After the employee received payments as a preferential and unsecured creditor, the tribunal struck out the unfair dismissal claim as it could not be actively pursued.
Compensation details:
- Protective award: 90 days' remuneration (amount not specified in the judgment)
- The employee received payments from the administration as a preferential creditor and an unsecured creditor, which likely covered the award.
Lessons & takeaways
- If your employer proposes 20 or more redundancies at one establishment, they must consult collectively with employee representatives or, if there are none, with each affected employee individually.
- A protective award can be made for up to 90 days' pay if the employer fails to consult properly, and you can claim it even if you have already left the job.
- If your employer goes into administration, your unfair dismissal claim may be stayed, but you might still pursue a protective award if the administrator consents.
- Keep records of any payments you receive from an administrator, as they may affect the amount you can recover from a protective award.
When redundancy consultation fails
This case shows what can happen when an employer makes large-scale redundancies without following the legal duty to consult. The former employee, who worked at Nationwide Accident Repair Services' Swinton site, was dismissed in September 2020 as part of a redundancy exercise affecting 20 or more staff. The company failed to inform and consult him properly, leading to a protective award of 90 days' pay.
The tribunal's decision was straightforward: the employer had not met the requirements of section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992. That law requires employers to consult collectively when proposing to make 20 or more employees redundant at one establishment. Where there are no employee representatives, the employer must consult each individual directly. The failure here was clear, and the protective award was made.
The impact of administration
A complication arose because the employer had entered administration. The administrator consented only to the protective award claim proceeding, not the unfair dismissal claim. The unfair dismissal claim was stayed and later struck out after the employee received payments as a preferential and unsecured creditor. This meant the employee could not pursue his unfair dismissal complaint, but the protective award still stood.
What this means for similar claims
For employees facing redundancy, this case highlights the importance of collective consultation rights. If your employer fails to consult when required, you may be entitled to a protective award of up to 90 days' pay. However, if your employer becomes insolvent, your options may be limited. The protective award can still be claimed, but you may need to deal with the administrator rather than the company directly. It is also worth noting that any payments you receive from the administration may reduce what you can recover under the award.
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