United Kingdom: New power to adjust protective award compensation by up to 25%

In brief

From 20 January 2025, employment tribunals will have the power to adjust any compensation award it makes for a successful protective award claim for failure to properly collectively consult by up to 25% where a party unreasonably fails to comply with the statutory Code of Practice on Dismissal and Re-engagement ("Code") or another applicable code of practice.


Contents

Key takeaways

  • The effect of the change is that where a claim for a protective award is successfully brought by affected employees or their representatives, and the tribunal considers that the Code or another relevant code of practice applies and either party has unreasonably failed to comply with it, it can adjust the compensation award by up to 25%.
  • The draft Order, amending Schedule A2 to the Trade Union and Labour Relations (Consolidation) Act 1992 had been expected to come into force on 18 July 2024 with the Code but it was not completed before the general election. For more information on the Code, please see our previous alert here.
  • For more information on what this development means for you and your business, please get in touch with your usual Baker McKenzie contact.

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