Government Doubles Protective Award for Collective Redundancy and Fire and Rehire Cases
Government Doubles Protective Award for Collective Redundancy and Fire and Rehire Cases but Rejects Interim Relief Proposal
The UK Government has confirmed that the maximum protective award available in cases of collective redundancy and fire and rehire will be increased to 180 days’ full pay. However, it has opted against introducing a provision allowing employment tribunals to grant interim relief in these cases. These decisions were outlined in the Government’s response to its consultation on strengthening legal remedies for affected employees.
Protective Awards: What’s Changing?
Employment tribunals can issue protective awards when an employer fails to meet collective consultation requirements. These requirements typically apply when a company plans to make 20 or more employees redundant within 90 days or seeks to dismiss and rehire at least 20 employees within the same period to impose new contract terms.
Last October, following the publication of the Employment Rights Bill, the Government revealed it was considering increasing the maximum protective award from 90 to 180 days’ full pay, or even removing the cap altogether. In its latest response, the Government has now confirmed that the award will be doubled to 180 days and that this change will be included in the final version of the Employment Rights Bill.
Expanded Scope of Collective Consultation Requirements
The Employment Rights Bill also introduces a key change to how collective consultation obligations are triggered. Under current law, these obligations apply when the proposed dismissals occur at the same workplace, site, or office. However, the new legislation will calculate the number of dismissals across the entire business, rather than limiting it to a single location. This means that more employers will be legally required to conduct collective consultations before proceeding with dismissals.
When Will These Changes Take Effect?
The Government has not yet confirmed an exact implementation date. However, based on earlier announcements regarding the Employment Rights Bill, these reforms are unlikely to take effect before 2026.
To help businesses navigate the complex legal obligations surrounding collective consultation, the Government has pledged to publish additional best practice guidance for employers in the near future.
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