Employment disputes insurance
It is predicted that with the ongoing impact of the Covid-19 pandemic, the fall-out from IR35 and the recent landmark court decisions on employment status, the number of employment tribunal claims will increase, bringing legal costs that no company would want to deal with, especially at the moment.
One option for businesses looking to mitigate the risk of expensive claims, is to take out employment disputes insurance.
The Cripps Pemberton Greenish Employment Law Protection Scheme
In response to our client’s needs, we have teamed up with Albion Legal to provide a highly flexible and comprehensive insurance scheme.
In the event of an employment dispute, our Employment Law Protection Scheme protects your business against all costs related to an employment tribunal claim including legal fees, agreed settlement sums and compensation awards. It also offers you the flexibility to design your own bespoke policy with individual elements of cover.
The scheme provides:
- Greater financial security, instant access to legal support and insurance protection against tribunal claims.
- Legal advice and due diligence to ensure you are up to date with the latest legislation and ensure compliance with the law.
- Protection to minimise your exposure to unexpected financial loss, capping all of your employment related legal and HR costs.
The tailored scheme can also provide an option to extend your policy to cover the costs of pursuing an employee or a former employee for breaching their restrictive covenants.
Many employers often choose to include restrictions within employment contracts to protect their businesses when employees leave. However, very few actually choose to pursue employees in the event that they suspect a breach of covenant has occurred, either because they are advised that the covenants are not enforceable, or because the legal costs associated with pursuing the employee are prohibitive.
The risks to your business of an employee acting in breach of their restrictive covenants can be significant. Not only can a breach lead to the loss of income and important clients but an ex-employee who has knowledge of your business, can also prove to be a valuable asset to your competitors, giving them an advantage.
The insurance scheme can cover your legal costs for pursuing an employee/ex-employee who has breached their covenants. We will also review your current restrictive covenants and make the necessary changes to ensure that they are enforceable. Once your cover is in place, and in the event an employee is in breach of their restrictive covenants, the policy will cover your legal costs associated with enforcing them (see policy wording for full details).
Other key benefits of the Scheme:
- Premium and fee instalment facilities.
- Includes indemnity for any legal fees, awards or settlements in the event of an employment dispute
- Ongoing advice to address issues specific to your business
- Policy triggers at ACAS Conciliation stage
- Option to add Health & Safety package
All of our legal advice is provided by specialist experienced employment solicitors, with packages tailored to your exact requirements. We are regulated by the Law Society and are fully authorised to handle your claims through special arrangements with the insurers.
If you would like to find out more about the Employment Law Protection Scheme and to obtain a quote, please contact Camilla Beamish.