The main risk is that employers will be ordered to pay a ‘protective award’ if they are found not to have complied with their collective consultation obligations by an Employment Tribunal. Tribunals can make a ‘protective award’ of 90 days’ pay in respect of each employee, and this is not subject to the cap on a ‘week’s pay’ as other areas of employment law.
Furthermore, a failure to properly collectively consult may also give rise to a claim that one or more of the redundancy dismissals were not fair, and redundant employees may bring unfair dismissal claims on that basis.
Employers are also required to file a HR1 form at the outset of the process with the Government, providing certain details of the proposed redundancies. Failure to do so can actually constitute a criminal offence!
Limited access modeSorry, you need to be an HR Protect client to access this content.
HR Protect clients receive all the employment law advice they need across the year, delivered by experienced specialist lawyers, at a single fixed price. In addition, being a client gives you access to our templates, flowcharts and guidance notes on this Hub, where you can also return to your favourites, share content with colleagues, and manage your account.
Already have an account?
Log in below to access this content.
Enter your email to reset your password or try to login again.