Former employees of BHS who accepted their redundancy, have commenced proceedings against the administrator of BHS, in an attempt to recover compensation, known as a protective award, for failure by BHS to inform and consul with their staff prior to making redundancies.
If the Employment Tribunal finds that BHS have failed to inform and consult in accordance with their duty as an employer under the Labour Relations (Consolidation) Act 1992, BHS and the government (as the company is in administration) could be ordered pay a protective award. A protective award is an award of up to 90 days’ gross pay per affected employee.
A similar case bought by former employees of Phones 4 U resulted in 400 employee receiving an award of around £3,000 each due to the failure to consult with employees before making them redundant.
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