AN OLDHAM-BASED solicitor believes significant changes to protective awards claims in the Employment Bill will be a ‘great benefit’ to those facing redundancy.
Alan Lewis, a partner at Pearson Solicitors and Financial Advisers and a specialist employment law solicitor, has long championed the rights of employees and helped thousands secure protective awards after being made redundant.
He has welcomed the recent significant change in the maximum compensation employment tribunals can award in protective award claims.
On March 4, 2025, the Government announced plans to increase the maximum protective award from 90 days to 180 days.
Mr Lewis stated: “This potential doubling of the award is a great benefit to those facing redundancy where 20 or more employees are being made redundant at the same establishment.
“It will also act as a greater deterrent to those unscrupulous employers who deliberately flout the rules on collective redundancies.”
However, just two days later, the Government announced it would shelve a separate proposal to strengthen workers’ rights in collective redundancy situations.
Initially, the proposed legislation aimed to make it easier for employees affected by a multi-site redundancy exercise to claim a protective award. Many businesses have made mass redundancies across different locations, but most affected employees have been unable to pursue claims due to the 20-employee threshold applying only to individual sites. The scrapped proposal would have removed this obstacle, offering greater protection to workers.
Employers had raised concerns that this legislative change could inadvertently expose them to breaches if small numbers of redundancies occurred across different sites in a 90-day period.
Mr Lewis continued: “It seems to me that the Government has thrown the baby out with the bathwater.
“There are many cases where an employer will be planning large-scale redundancies across multiple sites, and they will be fully aware of the total numbers from day one.
“This is a far greater concern for thousands of employees than the relatively small risk of an employer accidentally exceeding the 20-employee threshold.
“Larger employers, in particular, have HR and data systems that should easily identify and manage this risk.”
Reports suggest the Government may introduce further legislation allowing employees to aggregate redundancies across different locations in certain circumstances. However, no further details have been provided at this stage.
- Pearson Solicitors and Financial Advisers offers a comprehensive range of legal and financial services for both private and commercial clients. The firm operates from offices in Oldham, Hollinwood, Failsworth, and Milnrow, and has a new Uppermill office set to open in spring 2025.
Find out more on their website: www.pearsonlegal.co.uk
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