Compensation for breaching the immunities

When industrial action breaches the legal requirements set by TULRCA, unions lose the protection of the statutory immunities and are exposed to substantial compensation claims as well as the threat of injunction (see Chapter 9).

Compensation claims can be brought by the employer, a customer or supplier, or a member of the public claiming that the strike is likely to prevent or delay the supply of goods or services to him, or reduce their quality (section 235A(3), TULRCA).

Although employers can claim compensation for each separate action, there is a cap on the damages unions can be asked to pay per episode. That cap, set out in section 22, TULRCA, relates to the size of the union, and is as follows:

The sums involved can be even larger where a union has not complied with an injunction prohibiting the industrial action, that is, where the union is in contempt of court, placing its assets at risk of “sequestration” (seizure).

In cross-border claims based on alleged breaches of European Union law restricting industrial action, unions’ potential financial exposure is even greater. There may be no cap on the compensation that can be awarded in this kind of claim (see Chapter 12).