Labour Research November 2002

Features: Law queries

Law queries

My members won a protective award of 60 days' pay because the company failed to consult over impending redundancies. The company is now in receivership and the receivers say that there is no money to pay the award. What rights do my members have?

Where a company is insolvent and unable to pay money due to its employees some basic amounts are paid out of the National Insurance Fund. However, payment is limited to a maximum of eight weeks' pay. This means that although your members have won the equivalent of 12 weeks' pay, they will only be guaranteed the eight weeks.

* More information: Employment Relations Act 1996, section 184(2)