Redundancy without consultation: protective award for employee dismissed in mass layoff
A former employee with six years' service was awarded over £3,600 after their employer made 20 or more staff redundant without any consultation. The tribunal found a protective award of 90 days' pay was justified.
1 min read · Last updated 18 May 2026
Case details
Key facts
- Claimant employed from 4 July 2016 to 30 September 2022.
- Respondent entered voluntary liquidation on 12 January 2023.
- Respondent dismissed 20 or more employees without consultation.
- Claimant was not provided with a written statement of terms.
- Claimant received a protective award of 90 days' pay.
- Claimant was awarded notice pay and holiday pay.
Timeline
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Employment started
Claimant began employment with the respondent.
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Redundancy announcement
Respondent informed employees of closure and proposed redundancies.
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Dismissal effective
Claimant was dismissed by reason of redundancy.
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New employment started
Claimant began new job at lower salary.
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Last dismissal
Last of the collective redundancies took effect.
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Claim presented
Claimant submitted ET1 claim form.
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Liquidation
Respondent entered voluntary liquidation.
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Liquidator's response
Liquidator stated no intention to defend claims.
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Initial judgment
Tribunal issued judgment on liability and remedy.
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Reconsideration judgment
Holiday pay award increased to £3618.04 net.
The legal issue
The tribunal had to decide whether the employer breached its duty to consult collectively when making 20 or more employees redundant, and whether the employee was entitled to a protective award, notice pay, holiday pay, and a written statement of terms.
The outcome
The tribunal ruled in the employee's favour on most claims, awarding a total of £3,618.04 net.
- Protective award: 90 days' pay (amount to be calculated, subject to recoupment of benefits)
- Wrongful dismissal: Notice pay of £2,307.72 gross (6 weeks' statutory notice, after credit for new earnings)
- Holiday pay: £2,202.34 net
- Section 1 breach: £1,142 (2 weeks' pay at the capped rate)
- Unfair dismissal claim: Dismissed (redundancy was genuine, but the protective award covers the lack of consultation)
Lessons & takeaways
- Employers planning 20 or more redundancies must consult collectively with a recognised trade union or elected employee representatives, or face a protective award of up to 90 days' pay.
- Employees dismissed without consultation can claim a protective award even if the redundancy itself is fair, as the award compensates for the failure to consult.
- Statutory notice pay is based on one week per year of service (capped), and any earnings from a new job during the notice period must be deducted.
- Employers must provide a written statement of terms; failure to do so can result in an award of 2 to 4 weeks' pay.
When redundancy turns into a tribunal claim
This case shows what can happen when an employer makes staff redundant without following the legal duty to consult. The employee, who had worked for the firm for six years, was told on 5 September 2022 that the company would close and that 20 or more employees would be dismissed. No consultation took place with a trade union or with the employees themselves. The first dismissals took effect on 30 September 2022, and the last on 30 November 2022.
The employer entered voluntary liquidation in January 2023, and the liquidator did not defend the claims. The tribunal therefore decided the case based on the employee's evidence, under Rule 21 of the Employment Tribunal Rules.
What the tribunal awarded
The tribunal found that the employer had breached its duty to consult collectively under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992. It made a protective award of 90 days' pay — the maximum possible. This award is meant to compensate employees for the loss of the consultation process, not for the redundancy itself.
The employee also succeeded in claims for wrongful dismissal (notice pay) and outstanding holiday pay. The unfair dismissal claim was dismissed because the redundancy was genuine, but the protective award covered the lack of consultation. The tribunal also awarded two weeks' pay because the employer had failed to provide a written statement of employment terms.
Why this matters
This case is a reminder that the duty to consult collectively applies whenever an employer proposes to make 20 or more employees redundant at one establishment. Failure to do so can lead to a protective award of up to 90 days' pay per employee, even if the business is in financial difficulty. Employees who are made redundant without consultation should consider bringing a claim, especially if the employer has not followed the correct process.
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