Redundancy: Protective award made despite insolvency
This report relates to 1 case(s)
Smith and another v Cherry Lewis Ltd (in receivership)  IRLR 86 EAT (0 other reports)
In Smith and another v Cherry Lewis Ltd (in receivership), the EAT holds:
- A protective award made under s.189 of TULR(C)A 1992 is intended to be a collective, punitive sanction on the employer, not compensation for individual loss to the employees. A court is not entitled to take into account the employer's ability to pay in making a protective award. The employer's insolvency is therefore irrelevant.
- The guidelines set out by the Court of Appeal in Susie Radin v GMB  IRLR 400 should be followed when a tribunal is considering making a protective award. The earlier decision of Spillers French v Usdaw  IRLR 339, insofar as it introduced an element of compensation into the protective award, is no longer to be followed.