Redundancy Rights
Protective Award Redundancy Claims in 2026: Up to 90 Days' Pay for Failure to Consult
A protective award is tribunal compensation of up to 90 days' gross pay for collective redundancy consultation failures. Under Section 189 of the Trade Union and Labour Relations (Consolidation) Act 1992 1, you can claim this if your employer fails to consult you before making 20 or more redundancies. This guide explains how the award is calculated and how you can claim.
Key rules for protective awards
- Applies when your employer proposes 20 or more redundancies at one establishment within 90 days.
- Tribunals can award up to 90 days of actual gross pay, which is uncapped for solvent employers.
- If the employer goes bust, the Insolvency Service caps payments at 8 weeks of pay (£751 per week).
What Is a Protective Award?
When your employer proposes 20 or more redundancies at one establishment within a 90-day period, they have a statutory duty to consult collectively. Under Section 188 of the Act 3, they must consult with recognized trade unions or elected employee representatives.
This collective consultation must start at least 30 days before the first dismissal (if proposing 20 to 99 redundancies) or 45 days (if proposing 100 or more redundancies).
If your employer fails to consult properly, or fails to consult at all, you can take them to an employment tribunal. If successful, the tribunal will issue a protective award under Section 189 1. This is a payment designed to penalize the employer for breaching their statutory duties.
How Much Can You Receive?
The maximum protective award is 90 days' gross pay per affected employee. The exact award depends on whether your employer is solvent or insolvent, and the level of consultation failure.
| Employer Status | Calculation Rule | 2026 Statutory Limits |
|---|---|---|
| Trading (Solvent) | Based on your actual gross weekly pay. No statutory cap applies. | Capped only by the tribunal discretion up to the 90-day maximum 1. |
| Insolvent (Bust) | Paid by the Insolvency Service. Subject to statutory limits. | Capped at a maximum of 8 weeks of pay 4 at £751 per week in GB 2 (£783 in NI 5). |
The tribunal starts by assuming the maximum 90 days is appropriate. It is up to the employer to prove why they could not consult, such as in sudden and unavoidable business closures. However, insolvency on its own is not a valid excuse for failing to consult.
The Employment Rights Bill: Proposed Changes
The UK Government has introduced the Employment Rights Bill 2024-25, which proposes significant changes to collective redundancy consultation rules 6.
These proposals include doubling the maximum protective award from 90 days to 180 days. They also propose removing the requirement that the 20 redundancies must occur at one establishment. Under these proposals, the redundancies would be calculated across the entire business, preventing employers from avoiding consultation by splitting layoffs across different offices.
These changes are not yet in force. The proposals under the Employment Rights Bill 2024-25 have not commenced. The current law remains active, meaning the maximum protective award is 90 days' pay, and the requirement for redundancies to be at one establishment still applies.
Worked Examples: Solvent vs Insolvent Awards
These two examples demonstrate how a protective award is calculated depending on your employer's financial situation.
Example 1: Solvent Employer (Company is trading)
Your gross weekly pay is £1,000. Your employer makes 30 people redundant without consultation.
The tribunal awards the maximum 90 days (approximately 12.8 weeks) of gross pay.
Because the employer is solvent, the calculation uses your actual pay. You receive a payment of £12,800 gross.
Example 2: Insolvent Employer (Company has gone bust)
Your gross weekly pay is £1,000. Your employer goes bust and enters administration, failing to consult.
The tribunal awards a 90-day protective award. You must claim this from the Insolvency Service.
The Insolvency Service caps the payment at a maximum of 8 weeks of pay.
The calculation uses the statutory weekly cap of <Link href="/guides/redundancy-pay-cap-2026/" className="underline hover:text-ink">£751</Link> (Great Britain rate).
You receive a payment of £6,008 (8 weeks × £751) from the Insolvency Service. The remaining balance of the award can be registered as an unsecured debt, though recovery is rare.
How to Claim a Protective Award
A protective award is not paid automatically. You must claim it through an employment tribunal.
- 1
Confirm the threshold is met
Verify that 20 or more employees at your establishment were made redundant, or proposed to be made redundant, within a 90-day period.
- 2
Appoint representatives to lead the claim
If a trade union is recognized, they must bring the claim. If there is no union, elected employee representatives must bring it. If your employer failed to set up elections for representatives, individual employees can submit their own claims.
- 3
Start ACAS Early Conciliation
You must start the ACAS early conciliation process. This is a mandatory step before filing a tribunal claim. You must start this within 3 months minus 1 day from the date of your dismissal.
- 4
Submit your Employment Tribunal claim (ET1)
If conciliation does not resolve the issue, you must submit a claim form (ET1) to the <Link href="/guides/settlement-agreement-vs-tribunal-claim/" className="underline hover:text-ink">employment tribunal</Link> within the statutory time limit.
- 5
Obtain tribunal judgment and request payment
Once the tribunal rules in your favor, the employer must pay. If the employer is insolvent, you submit your tribunal judgment along with your claim details to the Insolvency Service Redundancy Payments team.
Settlement Agreements and Protective Awards
If your employer offers you a settlement agreement during a redundancy process, it will contain a waiver. By signing the agreement, you agree to drop all claims against your employer. This waiver includes any potential protective award claim.
Before you sign, you should verify whether the settlement payment accounts for the fact that your employer failed to consult collectively. A fair settlement should compensate you for this failure.
You can choose your own independent solicitor to review your settlement agreement. Your employer covers the fees for this review, and they pay these fees directly to your solicitor.
If you have been offered a redundancy package, you can check your offer using our free tool to find out where you stand.
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Check my offerFrequently asked questions
Can you claim a protective award if your employer is insolvent?
Yes, you can claim from the Insolvency Service. However, payments from the Insolvency Service are capped at a maximum of 8 weeks of pay, and the weekly pay is capped at the statutory limit of £751 in Great Britain (£783 in Northern Ireland).
What is the time limit for claiming a protective award?
You must start the ACAS early conciliation process within 3 months minus 1 day from the date of your dismissal. Missing this deadline means you will lose the right to claim.
Do you pay tax on a protective award?
Yes. A protective award is treated as part of your termination payment. It is tax-free if your total termination payments (including redundancy pay and ex-gratia payments) fall under the £30,000 threshold. Any amount over £30,000 is subject to income tax.
Can you claim a protective award if you sign a settlement agreement?
No. Settlement agreements contain a waiver where you agree to settle all tribunal claims. This waiver includes any potential protective award claims. If you are offered a settlement, you should check whether the amount compensates you fairly for any failure to consult.
References and Legislation
- Trade Union and Labour Relations (Consolidation) Act 1992, Section 189
- The Employment Rights (Increase of Limits) Order 2026 (SI 2026/310)
- Trade Union and Labour Relations (Consolidation) Act 1992, Section 188
- Insolvency Service Guidance: Payments for Redundancy Protective Awards
- The Employment Rights (Increase of Limits) Order (Northern Ireland) 2026 (SR 2026/57)
- Employment Rights Bill 2024-25 (House of Commons Bill 11)
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