Is your business prepared?
If you are a business owner in the current climate, it really is worth reflecting on what you would do if an Employment Tribunal claim were brought against you.
Are you protected and what might your legal bills look like?
A ‘Perfect Storm’:
It may sound like something that will never happen to you and your business but there is quite a ‘perfect storm’ brewing at the moment.
For example, the new government is looking to make it a ‘day one’ right for an employee to make an Employment Tribunal claim; this is likely to increase the chance of a claim being brought against many businesses.
In addition, we are seeing a rise in businesses requiring staff to return to the office and this is causing some friction, resulting in an uptick in claims being instigated.
It is currently free for an employee to bring an Employment Tribunal claim against you, even if you have done everything correctly, your defence might be robust enough to win your case but you still need to pay to defend any such claims, which can leave you with legal bills costing thousands just to demonstrate you were correct in the first place.
This is very unsatisfying, and quite rightly so, for business owners.
The cost:
A claim could mean you face thousands of pounds in legal costs with a protracted, expensive case to defend. As of Apr 2024, the maximum tribunal award for an unfair dismissal is 12 months’ wages with a cap of £115,115 (increased recently from £105,707).
Did you know that the national average cost of defending an Employment Tribunal is approximately £8,500?
It’s a costly affair that you can mitigate.
Safeguard your business:
Luckily, there are ways you can insulate yourself from damage.
One way you can secure your business is by obtaining Employment Disputes Insurance cover from Albion Legal.
This is an insurance policy specifically designed for businesses to protect themselves from damaging claims.
We have recently been approved on the panel of Albion Legal to provide legal services in defending claims for insured clients.
This means that our team who have supported you with the case before it reached a claim, are now able to support you in defending any claims without you having to instruct a costly solicitor by the hour; out of your own pocket.
Employment Disputes Insurance policy provides:
| Insurance cover against tribunal claims, fees, awards or settlements. | Flexible employment risk management with a budgeted annual cost. | Cover to minimise your exposure to unexpected financial loss. |
Key benefits:
- Includes cover for legal fees, awards and settlements
- Policy triggers at ACAS Conciliation stage and provides cover for the duration of the claim
- Bespoke cover structured to the specific needs of your business.
- Your advisor is fully authorised to handle your claims through a special arrangement with the Insurers
- Premium and fee instalment facilities are available.
With cover in place, you need not worry about a potential tribunal and the headache, expense and challenges of defending it.
If you would like to find out more, please contact the Taurus HR Solutions team on 0330 043 0897.