Protective Awards for Collective Redundancy Failures 2026/27
When an employer proposing 20 or more redundancies at one establishment fails to properly collectively consult, affected employees can claim a protective award — up to 90 days’ pay each. This guide explains how protective awards work in 2026/27.
When Collective Consultation Rules Apply
Where an employer proposes to make 20 or more employees redundant at one establishment within a 90-day period, specific collective consultation obligations apply, including electing or recognising employee representatives, consulting for a minimum period before dismissals take effect, and notifying the government of the proposed redundancies.
These obligations exist alongside, not instead of, an employer’s duty to consult individually with each affected employee, and a genuine failure to meet the collective consultation requirements can trigger a protective award claim regardless of how the individual consultation process went.
What a Protective Award Is
A protective award is compensation an Employment Tribunal can order an employer to pay to affected employees where it finds the employer failed to comply with the collective consultation requirements, calculated as up to 90 days’ pay per affected employee, though the tribunal decides the actual number of days awarded based on the seriousness of the failure.
It is a punitive measure aimed at compensating employees for the lost opportunity to be properly consulted, rather than compensation for the redundancy itself, so it applies in addition to any individual redundancy pay or other entitlements employees may separately be owed.
Bringing a Claim
Claims are typically brought by, or on behalf of, the affected employees (often through an employee representative or trade union) to an Employment Tribunal, within a set time limit after the dismissals, and a successful claim results in the tribunal deciding the protective award period, usually up to the statutory maximum in cases of the most serious failures.
Given the scale of potential liability across a large group of affected employees, disputes over whether proper collective consultation genuinely took place are common, and specialist employment law advice is generally recommended for both employers seeking to comply and employees considering a claim.
Frequently Asked Questions
When does collective consultation apply instead of just individual consultation?
It applies in addition to individual consultation where an employer proposes 20 or more redundancies at one establishment within a 90-day period, triggering specific requirements to consult with elected or recognised employee representatives and notify the government of the proposals.
How much is a protective award worth?
Up to a maximum of 90 days’ pay per affected employee, though the tribunal decides the actual number of days to award based on how serious and extensive the employer’s failure to consult properly was, so it does not automatically reach the maximum in every case.
Is a protective award instead of, or as well as, redundancy pay?
As well as — a protective award compensates for a failure in the collective consultation process itself, and is separate from, and in addition to, any statutory or contractual redundancy pay an employee is separately entitled to.
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Who can bring a protective award claim?
Affected employees, often acting collectively or through an employee representative or trade union, can bring a claim to an Employment Tribunal, and a successful claim generally benefits the whole group of employees affected by the consultation failure, not just the individual who brought it.
What counts as a genuine failure to consult collectively?
This can include not electing or recognising employee representatives at all, not consulting for the required minimum period before dismissals take effect, or not providing the specific information representatives are legally entitled to during the process — the tribunal looks at the substance of what actually happened, not just whether some consultation took place.
Is there a time limit for bringing a protective award claim?
Yes, claims must generally be brought to an Employment Tribunal within a set time limit after the relevant dismissals, so affected employees or their representatives should act promptly if they believe collective consultation obligations were not properly met.
Does a protective award apply if there were fewer than 20 redundancies?
No, the collective consultation duty that gives rise to a protective award only applies where an employer proposes 20 or more redundancies at one establishment within a 90-day period; below that threshold only individual consultation obligations apply, and a separate unfair dismissal claim may be the relevant route instead.
Can an employer avoid a protective award by pleading "special circumstances"?
An employer can argue special circumstances made full compliance impracticable, but tribunals interpret this narrowly and it rarely succeeds — an employer relying on it must still show it took all reasonably practicable steps towards compliance given those circumstances.
Is a protective award taxable?
A protective award is generally treated as taxable earnings rather than falling within the tax-free redundancy pay exemption, so employees should expect income tax and National Insurance to apply, and should check their own position with HMRC or an adviser.
What happens if my employer becomes insolvent before paying a protective award?
Employees may be able to claim an unpaid protective award from the National Insurance Fund via the Redundancy Payments Service, subject to statutory limits, in the same way other insolvency-related employee debts are recovered when an employer cannot pay.
Disclaimer: This guide reflects UK rules as they generally apply in 2026/27. This guide is for general information only and is not professional advice. Consult a qualified adviser and refer to gov.uk for current official guidance before relying on any treatment.
