Workplace Report May 2004

Law - Redundancy

Protective awards

Case 1: The facts

The general union GMB brought this case when manufacturing company Susie Radin did not properly consult over proposed redundancies. The employment tribunal made a protective award in favour of employees affected by the failure to consult. The employers appealed against the size and length of the protective award.

The ruling

The Court of Appeal held that the purpose of a protective award is to ensure that consultation is in accordance with the legal requirements. It is not aimed at compensating employees.

Although the court dismissed the company's appeal, it also laid down the following rules for employment tribunals hearing protective award claims:

1. the purpose of the award is to provide a sanction against the employer, not to compensate employees; 2. the tribunal should focus on the seriousness of the employer's default; 3. the default may vary in seriousness from a technical to a complete failure; and 4. the deliberateness of the failure may be relevant.

Susie Radin v GMB and others, [2004] IRLR 400