Even with the best possible employment law advice and carefully managed procedures, it is impossible to guarantee that an employer will never receive an Employment Tribunal claim. As part of our service, EBS Law offers Employment Tribunal Insurance to provide clients with additional protection if a claim is made.
The insurance forms part of the wider support we provide to employers and works alongside our employment law advice and Employment Tribunal Defence service. It is designed to give clients greater financial protection and reassurance if a workplace dispute develops into formal tribunal proceedings.
Employment Tribunal claims can be costly to defend, even where an employer believes it has acted correctly. Legal costs can build quickly and, depending on the nature of the case, an employer may also face the risk of compensation or other financial awards.
What does the Insurance Cover?
The precise scope of cover will depend upon the terms and conditions of the insurance, but clients will gain protection in relation to claims involving matters such as:
- Unfair dismissal
- Constructive dismissal
- Discrimination
- Whistleblowing claims
- Enforcing restrictive covenants
Subject to the terms of the scheme, the insurance may cover legal costs connected with defending an Employment Tribunal claim and, depending on the terms of the cover, certain costs or awards arising from the proceedings.
Example: An Employer Relying on Employment Tribunal Insurance
A small business dismisses an employee following a disciplinary process. The former employee then brings Employment Tribunal claims for unfair dismissal and discrimination. On receiving the claim, the employer promptly notifies its Employment Tribunal insurer and provides the claim form, relevant correspondence and the documents relating to the disciplinary process.
The insurer confirms that the claim falls within the policy, subject to its terms, limits and exclusions, and authorises the employer’s legal representatives to defend the proceedings. The legal team prepares the ET3 response, advises on evidence and witness statements, handles correspondence and represents the employer at the final hearing.
If the claim is successfully defended, the policy may meet the authorised legal costs. If compensation or a settlement becomes payable, whether that amount is covered will depend on the insurer’s prior approval.
All insurance is subject to the relevant policy terms, conditions, limits and exclusions. Clients should therefore refer to the full policy wording for details of the protection provided.
Why This Protection Can Be Important
Employment Tribunal insurance can make commercial sense because it allows an employer to budget for a defined premium rather than face an uncertain legal bill from a high-street solicitors’ firm if a claim arises. Tribunal proceedings can require substantial work over many months, including preparing the ET3 response, reviewing documents, drafting witness statements, attending preliminary hearings and conducting the final hearing, with fees increasing as the case develops. Insurance may meet eligible defence costs and provide access to specialist representation, giving the employer greater financial certainty and reducing the risk that an unexpected dispute will place pressure on cash flow, subject always to the policy terms, limits, exclusions and the insurer’s approval requirements.
Advice and Protection for Employers
EBS Law advises employers on a wide range of Employment Tribunal and employment law matters. Our winning service is designed to provide practical advice before problems arise with legal assistance when a dispute develops.
If you would like to discuss our Employment Tribunal Insurance, Employment Tribunal Defence service or employment law support, please contact EBS Law on 01625 87 4400 or enquiries@ebslaw.co.uk.
Related Employment Tribunal Services
- Employment Tribunal Advice for Employers
- Responding to an Employment Tribunal claim
- ET3 Help for Employers
- Employment Tribunal Representation for Employers
John Bloor
EBS Law
Direct Line 01625 874400