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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Acas – Free webinars available for small scale redundancies 5 November 2020
Acas are offering employers a free webinar on the topic of small-scale redundancies.
As reported earlier this week, Insolvency service has updated their guidance page on what to do when you have been made redundant to include information on Protective Awards giving employees a better understanding of their employment rights, meaning that more than ever, employers should familiarise themselves with the correct processes to following during redundancy.
Acas are offering a webinar available to employers which will look at the main elements involved in a small-scale redundancy process, including the related law and good practice guidance.
The webinar will cover: •
The impact of coronavirus (COVID-19) on the job market • Alternatives to redundancy • Legal obligations, risks, and potential pitfalls • Communicating and consulting with employees
Two dates are being offered for this free event.
Tuesday November 10 10:30 - 11:30
Thursday November 12 14:00 - 15:00
Acas have advised that:
“We anticipate that these events will fill quickly so we advise registering your place early to avoid disappointment”
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Record increase in redundancies in August – October 2020 17 December 2020
Figures released by the Office for National Statistics (ONS) highlight the fact that there was a record spike in redundancies in the three months to October.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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