Redundancy and Associated Issues, including Protective Award Claims
Under legislation dating back to 1992 it is possible for an application to be brought in the Employment Tribunal seeking compensation against a business if redundancies are declared, but there has not been adequate consultation. A Tribunal may award up to 90 days gross pay for each affected employee when consultation has not taken place in relation to a proposal to dismiss as redundant 20 or more employees at one establishment.
If a business is planning to declare redundancies, there are formal rules in place requiring consultation with a recognised Trade Union or alternatively with representatives of the workforce. It is important to obtain legal advice when progressing group redundancy exercises to ensure that the business does not face an application for a protective award, and also to ensure that the redundancy exercise is handled correctly. EAD is able to assist in progressing business reorganisation and change situations, including providing advice about possible redundancies which may arise on a case by case basis.
If your business is involved in a redundancy situation, you will appreciate that 90 days of gross pay for each person involved could lead to a very substantial award against the business. This would be in addition to redundancy and notice payment and in the past protective awards have been ordered against businesses totalling hundreds of thousands of pounds, and even more in some situations.
There is a separate legal obligation to inform and consult Trade Unions and individual workers arising from a TUPE situation, and if the business is involved in a transfer, it is important to seek legal advice about the obligations and issues which arise, depending upon the facts of each case. Stephen Pinder has been involved in many of the most well known TUPE cases to be reported, and has undertaken TUPE related work for clients for over 20 years. This level of expertise and experience is crucial in ensuring that you do not fall foul of the complex rules which arise in this kind of business transaction.
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