Protective awards

An Order will come into force linked to the new Statutory Code of Practice on Dismissal and Re-engagement.

The Order amends Schedule A2 to the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA).

That Schedule lists the tribunal jurisdictions to which the section of TULRCA that deals with the consequences of a failure to comply with a statutory code of practice applies.

The Order adds s189 TULRCA (concerning a failure to follow collective consultation requirements) to that list.

The effect of this will be that in a claim for a protective award brought by affected employees or unions, where it appears that a relevant Code of Practice applies and the employer has unreasonably failed to comply with it, compensation can be increased by up to 25%.

The Code and Order come into force on 18 July 2024, but implementation may depend on the election result, if Labour bans “fire and rehire”.