The collapse of longstanding London restaurant chain Spaghetti House has left many employees suddenly facing redundancy and uncertainty about what happens next.
Lavval Restaurants Limited, which traded as Spaghetti House, entered administration on 6 May 2026, with all restaurants closing immediately and staff being made redundant following the appointment of administrators from Begbies Traynor.
The closure brings to an end more than 70 years of trading for a business that once operated multiple restaurants across London.
For many employees affected by the closures, redundancy pay may not necessarily be the end of the matter.
A Protective Award claim – potentially worth up to 180 days’ pay
Where an employer proposes making 20 or more redundancies at a single location within a 90-day period, the law usually requires a formal collective consultation process to take place first.
If that consultation process is not properly followed, employees may be entitled to bring a Protective Award claim through the Employment Tribunal.
A successful claim can be worth up to 180 days’ gross pay per employee, separate from and in addition to redundancy pay.
Importantly, these claims can still arise even where a company has entered administration or ceased trading altogether.
Administration does not automatically prevent a claim
Many employees are told only what redundancy payments they may receive and are never informed that additional claims could potentially exist.
Employees affected by insolvency situations can often still claim statutory redundancy pay, notice pay, holiday pay and unpaid wages through the government scheme.
A Protective Award claim may also still be possible, although strict time limits apply, so obtaining advice early can be important.
Whether a claim succeeds will usually depend on how the redundancy process was handled, rather than job role or length of service.
What should affected Spaghetti House employees do next?
Protective Award claims are subject to strict deadlines, and delays can affect eligibility.
At Middleton Law work on a No Win, No Fee basis for Protective Award claims, so there is no financial risk in exploring your options so you can email or call us to explore your options.
- Download our simple guide to Protective Award claims here.
A brief conversation can often provide clarity and reassurance so speak to our team for a free, no-obligation discussion about your situation. Call or email now.
