Employment tribunal claims are not uncommon in recent years, leading many HR companies, HR consultants, and Employment Lawyers seriously consider Employment Tribunal insurance. This type of insurance covers legal costs and expenses incurred in defending or settling employment tribunal claims.
The coverage provided by Employment Tribunal insurance typically includes:
- Legal representation costs: This includes the fees of Employment Lawyers and solicitors, as well as the costs of barristers, if required.
- Compensation awards: If the tribunal rules in favour of the claimant, the insurance policy may cover the compensation awarded to the employee.
- Settlements and mediation costs: In some cases, settlements or mediation may be preferred over going to a full employment tribunal hearing. The insurance policy can cover the costs associated with such settlements.
- Employment practices liability: This coverage protects against claims related to wrongful termination, discrimination, harassment, or other employment-related issues.
To emphasize the importance of Employment Tribunal insurance, here are a few examples of recent employment tribunal cases in the UK:
Case 1: An employee filed a claim against their employer for unfair dismissal and discrimination on the grounds of gender. The tribunal ruled in favour of the employee and awarded substantial compensation for loss of earnings and emotional distress.
Case 2: A group of employees alleged that their employer failed to provide equal pay for work of equal value. The tribunal found the employer guilty of pay discrimination and ordered the company to compensate the employees for the difference in wages.
Case 3: An employee accused their manager of bullying and harassment, leading to severe emotional distress and resignation. The tribunal sided with the employee and awarded compensation for the psychological harm caused.
Insurance coverage is crucial for HR companies, HR consultants, and Employment Lawyers to mitigate the financial risks associated with employment-related claims. Employment Tribunal insurance, in particular, provides essential protection against the rising number of employment tribunal cases. By having comprehensive insurance, HR professionals and legal practitioners can ensure they are adequately protected and can focus on providing valuable services to their clients while having peace of mind.
If you are interested to find out more about Employment Tribunal insurance, get in touch with us.
