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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50497
Experience:  Qualified Employment Solicitor
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I was made redundant 4 months ago due to the company

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I was made redundant 4 months ago due to the company becoming insolvent. I subsequently received my redundancy pay and notice pay from the National Insurance Fund claiming through the government. My question is, am I entitled to compensation for non-consultation (protective award) via a tribunal and if so would this also come from the National Insurance Fund?Thanks Michael

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

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.

I trust this has answered your query. Please take a second to leave a positive rating by selecting 3, 4 or 5 stars above - this is an important part of our process and recognises the time I have spent assisting you. If you still need me to clarify anything else, please reply on here and I will assist as best as I can. Thank you

Customer: replied 6 months ago.
Hi Ben
Thanks for the quick response.
Just to clarify I do have a tribunal court date at the end of the month as I did submit a claim a few months ago. I was told recently by a friend that if the claim was to be made against a company that was insolvent and no longer trading the tribunal would be a waste of time as it's the company you have to claim against. I wasn't sure if it was a claim if won through tribunal it would come from NIF and just wanted clarification if this would be the case?
Thanks Michael

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?

Customer: replied 6 months ago.
Thanks for the reply. After your advice i have just spoken to ACAS who told me to speak to the government redundancy payment service directly so I rang them and explained to them the situation as I did to you and they said even though I received both my redundancy payment and the notice period payment that if I present my case before the tribunal and won then compensation would definitely be paid from government funds.
This seems to contradict what was stated in your last reply in the last paragraph.
What do you think?

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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Customer: replied 6 months ago.
That makes sense.

you are welcome and all the best