Employment Practices
Liability
UK Employment law has changed. Capped damages
have been removed for many offences and the burden of proof lies on
employers to show their innocence to tribunals - or face five even
six figure losses.
The number of employment practices claims
brought in the UK is increasing rapidly. According to the 06/07
Employment Tribunals Annual statistics, the number of cases heard
at tribunal has increased by 53% in the past two years, from
156,000 to 238,000. In the two years between 04/05 and 06/07:
- Sexual discrimination cases more than doubled
to 28,000 cases a year
- Religious belief discrimination cases doubled
to 700 a year
- Equal pay cases have increased fivefold to
44,000 a year
Claims experience from one of the UK’s leading
insurers suggests that these statistics are just the tip of the
iceberg, as the majority of claims are settled prior to going to
tribunal. Claims brought by highly-paid employees can be expensive,
but even an average tribunal award for a sexual discrimination case
exceeds £10,000 – which of course doesn’t include defence
costs.
Employment Practice Liability Insurance
provides global coverage for damages, judgements, settlements and
defence costs for a range of actual or alleged employment practice
violations. Coverage includes (but is not limited to):
- Unfair or wrongful dismissal, discharge or termination
- Unlawful discrimination (including but not limited to age,
gender, race, colour, national origin, religion, sexual orientation
or preference, pregnancy or disability)
- Discrimination against “whistleblowers”
- Breach of an implied contract
- Constructive dismissal
- Failure to employ or promote
- Failure to furnish accurate references
- Failure to grant tenure or negligent employee evaluation
- Failure to provide adequate employee policies and
procedures
- The policy can be enhanced to provide additional cover for
punitive and exemplary damages as well as the transfer of staff
under TUPE regulations
To obtain a quotation for EPL insurance cover,
simply download the form on the right hand side of the page,
complete and return to us by fax, post or email.
Please also feel free to contact us, for a
confidential discussion, even if your policy is not yet due for
renewal.
Download document 10 Reasons to buy Employment
Practices Liability Insurance by clicking right hand box