…we always hope that our staff are our biggest asset. But they can turn into our biggest liability, if employer/employee relations break down and they bring a claim against you in the Employment Tribunal.
How much could an unfair dismissal claim cost if it went to the Employment Tribunal?
An unfair dismissal claim could be up to £76,574.
How much could the employment tribunal award for a discrimination claim!
There is no cap on discrimination claims and some have reached millions.
What if I am in the process of making someone redundant. Can I still get cover if the dismissed employee wanted to bring a claim?
We have had instances where a business has disclosed current downsizing initiatives and we have been able to get these covered.
Sometimes that letter may take the form of a letter of claim from a solicitor on behalf of one of your current or ex-employees.
That letter of claim could contain all kinds of allegations. It could include allegations of discrimination, wrongful dismissal, unlawful deduction of wages, invasion of privacy, failure to adopt adequate employment policies – it could even include allegations of harassment.
If a claim for unfair dismissal went to the Employment Tribunal you may be ordered to pay as much as £76,574. For discrimination claims, there is no limit to the award against you as an employer.
The allegations made could be entirely fiction made up by a bitter employee. But you still have to take them seriously. And you will still need to devote time, energy and a lawyer to defend you.
Or….there is another way.
It’s not widely known, but you can get insurance to protect you from being blindsided in this way. Employment Practices Insurance may cost as little as a few hundred pounds and cover your costs in defending the clam, as well as the award against you if your defence fails.
For more information call 0207 648 4343 or email info@custodianinsurance.co.uk. Or complete the contact form below and we’ll call you:
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