Monarch Airlines made almost 2000 employees redundant with immediate effect on 2nd October 2017 after falling into administration and around 110,000 passengers were left stranded abroad.
Monarch Airlines was reportedly the biggest UK airline to ever enter administration.
Under s.188 of the Trade Union and Labour Relations (Consultation) Act 1992 (TULRCA), an employer is obligated to collectively consult with its employees when proposing to make redundancies. Where an employer proposes to make redundant between 20-99 employees, they must consult with those employees over a period of 30 days. Where an employer proposes to make 100 or more employees redundant, the consultation period is 45 days. Failure to consult entitles the employees to a Protective Award- punitive damages of up to 90 days’ pay.
Carl Moran and Hannah Durham acted for hundreds of employees in bringing a Protective Award claim as none of the former employees received any of the required consultation.
Carl Moran stated at the time
“Sadly, employees are often treated poorly when companies such as Monarch collapse in these circumstances. Employees’ rights are often ignored during the administration process which can cause severe financial hardship for them. All employees who are made redundant, irrespective of their length of service, are entitled to a Protective Award where the company has failed to properly collectively consult with them and are entitled to claim significant damages in respect of those failings.”