Employment Tribunal Insurance
We work with a broker who can arrange what we believe to be the UK’s best insurance against your costs and any settlement (or award) for employment tribunal cases. We can send you a simple form to fill in to obtain a formal quote, or can give you an approximate quote over the phone if you would like a quicker answer.
As a rough guide, a company with 15 employees earning the average national wage, and with no history of employment disputes would pay approximately £30 (inc. IPT) per month for this insurance.
How our employment tribunal insurance works
We know that some HR and employment law services build insurance into their charges. We have decided not to do that for three reasons:
Firstly, many of our customers do not want to pay for the insurance, and by making it available as an optional extra we make it possible not to pay for it.
Secondly, we have had lots of conversations with customers who have tried to claim against the insurance they were offered as part of a package from their previous HR supplier, but who have not received the payment they had expected. This was normally because the insurer required them to follow a process that they were not comfortable following.
Thirdly, we have found many customers who had expected the insurance to cover the costs of their dispute but were surprised to find that they still had to pay sometimes quite high bills for consultant time involved in the dispute.
We believe that the insurance cover available through Albion Legal, the broker we work with, is the best cover available in the UK. We believe that it pays out more the way you would expect it to, and without the unexpected awkward process some other insurance schemes require.
We know that the number of employment disputes reaching tribunals has fallen considerably since five years ago. On the other hand, recent data shows the number of new cases going to employment tribunals rose by 88% between Q4 2013 and Q4 2014 to 18,943. The average cost of a settlement for a case at tribunal is £14,000.
Since the introduction of the new ACAS Conciliation rules there has also been a large increase in the number of matters that have settled prior to claims being issued. In addition to covering claims issued against you the policy will also cover the legal fees in dealing with the ACAS Conciliation process along with any associated settlements should you decide to settle this prior to a claim being issued.
Some of our customers believe that the cost of insurance is small enough that they are very keen to take it to get the comfort of knowing that they are covered in case there is a dispute. Other customers are keen not to pay for something they expect they won’t ever need. We are happy to work with you whichever decision you make.
If you want more information on employment tribunal insurance, or our HR service as a whole, do get in touch with us on 0333 444 0165.