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There is no automatic payment for failure to consult in a redundancy situation. That may potentially make a dismissal procedurally unfair but claiming for unfair dismissal now is not possible as such a claim needs to be made within 3 months of dismissal so you are out of time and also it would be against the employer as the NIF will not cover the compensation aspect of it. Therefore it is not something you can now pursue I’m afraid.
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Hi there, it is largely correct that claiming against an insolvent employer is a waste of time and whilst the NIF will cover some payments owed to you, it would only be the following:
· Up to 8 weeks' arrears of pay (capped) less basic rate tax and NI contributions.
· Up to 6 weeks' holiday pay (capped) which accrued in the 12 month period ending on the date of the insolvency, less basic rate tax and NI contributions.
· Statutory notice pay (capped) less basic rate tax.
· Statutory redundancy payment less any amount already paid by the employer
Compensation for unfair dismissal due to lack of consultation will not be covered and the only thing the NIF will cover I unfair dismissal claims is the basic award, which you will not be entitled to as you have already received redundancy pay. Hope this clarifies?
they are probably referring to the protective award for failure to consult, which will be covered, but that only amounts to a relatively small part of such compensation. The major chunk of unfair dismissal is the compensatory award - compensation for future loss of earnings and this is not covered by them. So yes you will likely get something from them in terms of protective award but not the larger compensatory award. Hope this clarifies?
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