Former employees of Elements Europe, the collapsed modular construction specialist, have won a significant employment tribunal ruling after the company was found to have failed to carry out the legally required collective consultation process before making staff redundant. Employment Judge Maxwell ruled that Elements Europe breached section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992, which requires employers to consult with worker representatives for a minimum period before announcing large-scale redundancies.
90
Maximum protective award days granted to workers
As a result of the ruling, affected workers have been granted a 90-day protective award. This is the maximum award available under the legislation and represents up to 90 days' gross pay per employee. Claims of this kind are brought to tribunal when an employer in administration or insolvency has dismissed workers without going through the proper collective consultation process.
Because Elements Europe entered administration before the award was made, affected workers will need to apply to the Insolvency Service's Redundancy Payments Service to recover the money from the National Insurance Fund, up to the statutory cap. The ruling represents a notable outcome for workers who lost their jobs when the business collapsed, and serves as a reminder that employment protections continue to apply even when a company becomes insolvent.