Human resources (HR) companies and HR consultants play a crucial role in managing employment-related matters within organisations. They handle sensitive employee issues and provide guidance on various employment policies and practices, and even if the best advice is given, this does not guarantee there will be no employment dispute. In this blog post, we will explore the vital protection provided by Employment Tribunal insurance. We will also highlight some recent employment tribunal examples in the UK.
Insurance for Employment Lawyers
Employment Lawyers provide legal advice and representation to both employers and employees in matters related to employment law. Due to the nature of their work, they face inherent risks associated with potential professional liability claims. Employment Lawyers and HR providers will either have to buy professional liability insurance or are advised to. However, many of their clients will not have employment tribunal insurance.
Essential Employment Tribunal Protection
According to official statistics from the UK government, Employment tribunal claims have become increasingly common in recent years, making it essential for HR companies, HR consultants, and Employment Lawyers to have 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 ACAS 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.
Employment Tribunal Examples in the UK
To emphasise 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.
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.
For more information about Employment Tribunal insurance and to secure your protection, contact Custodian Management Ltd today.
Email: info@custodianinsurance.co.uk Phone: 033 33 448 535
