If your employer has appointed administrators (or you’re hearing rumours that they may have to) it’s natural to feel uncertain about what this means for your job and your finances.

In these situations, employees are often given very little information. Decisions can be made quickly, communication may stop, and people are left trying to work out what they’re actually entitled to.

Redundancy pay isn’t always the end of the story…

Where redundancies are handled without proper consultation, employees may be entitled to additional compensation –  even if the business later goes into administration or stops trading altogether.

Situations we see again and again…

We regularly act for employees in this situation who are never told about their possible right to claim for a extra pay through a Protective Award claim.

When a business is struggling or closes suddenly, employees are usually told what redundancy pay they will receive and assume that is the full extent of their rights.

Protective Award issues commonly arise where:

• redundancies happen suddenly or with little warning
• there are no meaningful consultation meetings
• the business enters administration shortly before or after redundancies

Why the redundancy process matters

Where an employer plans to make large numbers of redundancies, the law requires a consultation process to take place before dismissals happen. This is meant to give employees time to understand what is proposed and to have a say in the process.

When consultation does not happen (or only happens after decisions have already been made) employees may be entitled to a Protective Award, which can be worth up to 90 days’ gross pay, on top of redundancy pay.

Many people are not told about this at the time.

What if the company has already gone into administration?

If your employer is insolvent, you can usually claim statutory redundancy pay, notice pay, holiday pay and unpaid wages from the government.

A Protective Award claim may still be possible. If successful, part of the award may be paid through the Redundancy Payments Office, subject to statutory limits. Strict time limits apply, so getting advice early is important.

What should you do next?

We work on a No win, No fee basis, so there is no financial risk in exploring your options with us.

If you are unsure whether this applies to you, a good first step is to check whether you are likely to be eligible. We offer a short eligibility check, with no obligation and no cost.

• Check whether you may be eligible for a Protective Award with our short form
• Download our easy guide to Protective Award claims

A brief conversation can often provide clarity and reassurance at a difficult time – call or email us today.