Employment Practices Liability
28th May 2009
Management Insurance Is Far From Redundant!
Employers are more likely to find themselves in court and awards can be huge. Help is at hand from a local Broker.
Claims for unfair dismissal are rising at an alarming rate as the recession takes hold and employers lay off more and more staff. However, less than 15% of these firms have any sort of insurance cover for this risk.
According to the most recent government statistics the frequency of employment tribunals is increasing rapidly. Over the past 9 months alone there has been a 25% rise in the number of unfair dismissal cases reaching a tribunal. In this period there have been 38,000 cases recorded across the UK, which is nearly as many as the total of cases for the 12-month period ending March 2008. However, this is only part of the picture as many cases are settled before they even reach a tribunal so this could be just the tip of the iceberg.
“A small or medium sized business is now significantly more likely to face an employment tribunal than a fire,” says David Harrison, a Director of Franklands, Derby’s leading Insurance Broker and Risk Management Consultant. “The frustrating thing is that comprehensive insurance policies are available, at a very cost effective premium and this is why Franklands is keen to talk to companies about this cover ”.
The figures are startling. The average tribunal can cost a business up to £20,000 and can go even higher if the court awards punitive damages and legal costs as well as the actual compensatory payment. Larger companies can face bills running in to millions of pounds.
There is no doubt that claims are rising at an extraordinary rate. The long-term trend towards the compensation culture within the UK means that employees are ever more aware of their rights and are prepared to use them. In addition, exacerbated by the recession, an employee, facing redundancy is much more likely to bring a claim. Many employers are having to cut large chunks of their workforce and in the current climate they may be less likely to adhere strictly to the intricate rules regarding dismissals and redundancies, leaving them potentially open to claims.
At a time when most businesses are trying to trim costs, Franklands strongly recommends that all businesses should consider this form of insurance protection and certainly in the current economic climate it is more valuable than ever.
For more information, contact David Harrison on 01332 545720.
Management Insurance Is Far From Redundant!
Employers are more likely to find themselves in court and awards can be huge. Help is at hand from a local Broker.
Claims for unfair dismissal are rising at an alarming rate as the recession takes hold and employers lay off more and more staff. However, less than 15% of these firms have any sort of insurance cover for this risk.
According to the most recent government statistics the frequency of employment tribunals is increasing rapidly. Over the past 9 months alone there has been a 25% rise in the number of unfair dismissal cases reaching a tribunal. In this period there have been 38,000 cases recorded across the UK, which is nearly as many as the total of cases for the 12-month period ending March 2008. However, this is only part of the picture as many cases are settled before they even reach a tribunal so this could be just the tip of the iceberg.
“A small or medium sized business is now significantly more likely to face an employment tribunal than a fire,” says David Harrison, a Director of Franklands, Derby’s leading Insurance Broker and Risk Management Consultant. “The frustrating thing is that comprehensive insurance policies are available, at a very cost effective premium and this is why Franklands is keen to talk to companies about this cover ”.
The figures are startling. The average tribunal can cost a business up to £20,000 and can go even higher if the court awards punitive damages and legal costs as well as the actual compensatory payment. Larger companies can face bills running in to millions of pounds.
There is no doubt that claims are rising at an extraordinary rate. The long-term trend towards the compensation culture within the UK means that employees are ever more aware of their rights and are prepared to use them. In addition, exacerbated by the recession, an employee, facing redundancy is much more likely to bring a claim. Many employers are having to cut large chunks of their workforce and in the current climate they may be less likely to adhere strictly to the intricate rules regarding dismissals and redundancies, leaving them potentially open to claims.
At a time when most businesses are trying to trim costs, Franklands strongly recommends that all businesses should consider this form of insurance protection and certainly in the current economic climate it is more valuable than ever.
For more information, contact David Harrison on 01332 545720.
Management Insurance Is Far From Redundant! Employers are more likely to find themselves in court and awards can be huge. Help is at hand from a local Broker.
Claims for unfair dismissal are rising at an alarming rate as the recession takes hold and employers lay off more and more staff. However, less than 15% of these firms have any sort of insurance cover for this risk.
According to the most recent government statistics the frequency of employment tribunals is increasing rapidly. Over the past 9 months alone there has been a 25% rise in the number of unfair dismissal cases reaching a tribunal. In this period there have been 38,000 cases recorded across the UK, which is nearly as many as the total of cases for the 12-month period ending March 2008. However, this is only part of the picture as many cases are settled before they even reach a tribunal so this could be just the tip of the iceberg.
“A small or medium sized business is now significantly more likely to face an employment tribunal than a fire,” says David Harrison, a Director of Franklands, Derby’s leading Insurance Broker and Risk Management Consultant. “The frustrating thing is that comprehensive insurance policies are available, at a very cost effective premium and this is why Franklands is keen to talk to companies about this cover ”.
The figures are startling. The average tribunal can cost a business up to £20,000 and can go even higher if the court awards punitive damages and legal costs as well as the actual compensatory payment. Larger companies can face bills running in to millions of pounds.
There is no doubt that claims are rising at an extraordinary rate. The long-term trend towards the compensation culture within the UK means that employees are ever more aware of their rights and are prepared to use them. In addition, exacerbated by the recession, an employee, facing redundancy is much more likely to bring a claim. Many employers are having to cut large chunks of their workforce and in the current climate they may be less likely to adhere strictly to the intricate rules regarding dismissals and redundancies, leaving them potentially open to claims.
At a time when most businesses are trying to trim costs, Franklands strongly recommends that all businesses should consider this form of insurance protection and certainly in the current economic climate it is more valuable than ever.
For more information, contact David Harrison on 01332 545720.