Insolvency service update – What to do if you have been made redundant
02 November 2020
Insolvency service has updated their guidance page on what to do when you have been made redundant to include information on Protective Awards.
A Protective Award is a form of compensation that is awarded by an employment tribunal due to an employer not consulting with employees correctly prior to being made redundant. Employees are only entitled to this payment if they or their job role was included in a tribunal judgment.
If an employee’s former employer is insolvent, the Insolvency Service will pay the Protective Award, but the amount that can be paid is capped at eight weeks of pay. If employees were made redundant on or after 6 April 2020, the weekly amount is capped at £538. For redundancies before 6 April 2020, these amounts will be lower.
Reports of redundancies due to the current pandemic are rife at present and ensuring the correct processes are in place are even more vital than ever, especially as employment rights become more transparent. Employees are better informed of their employment rights; therefore, employers should do their upmost to ensure that they are following the correct processes.
Help and guidance on redundancy is available from a variety of sources, such as the ACAS and Gov.uk websites. CIPP members can also access a factsheet produced by the CIPP policy and research team.
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