Changes to the Employment Tribunal System

The Resolving Workplace Disputes consultation took place last year and the Government's response to the consultation was published on 23 November 2011. Ministers invited Mr Justice Underhill to undertake a fundamental review and recommend a revised procedural code for employment tribunals by the end of April 2012.  The revision should enable workplace disputes to be resolved more quickly, reduce pressure on the employment tribunal system and save money for employers and the taxpayer.

Some changes came into force on the 6^th April.  New employees now need to be employed for two years to gain the right to claim unfair dismissal.  The amount of a deposit that an Employment Tribunal can order the claimant to pay for them to be permitted to continue with their claim (deposit order) increased from £500 to £1,000.  Unfair dismissal cases can now be heard by a judge sitting alone.  Witness statements may no longer be read out loud and witnesses expenses may be payable by the losing party.  The amount of costs an employment tribunal is able to award has risen from £10,000 to £20,000.

The aim of these changes is in part to discourage “frivolous” claims.  However claimants can and often do instruct “no win no fee” solicitors so it is uncertain how effective these changes will be.

The overall average award made by Employment Tribunals was £14,222 in 2010-11.  Small to medium sized businesses may find it more difficult to keep up with employment law.  Directors’ & Officers’ Liability Insurance including an employment practices liability extension will provide that added peace of mind. If you would like any information about this and other insurance policies, please just get in touch.

The Unforeseeable…..

Employees were sorting rubbish on a conveyor belt at a waste transfer station.  One member of staff picked up a house brick and threw it at a colleague.  The house brick struck the colleague on the forehead.  The employee who threw the brick asserted that his colleague jumped up to head the brick as it flew past him.  Unfortunately for their employer this explanation was not considered by the judge to be mitigating and so a hefty compensation claim ensued.

It is impossible to legislate for the silly things people do.  Accidents happen because of a momentary lapse of thought.  We’ve probably all done it.  I still remember cleaning a pair of scissors and running my finger along the blade and thinking the next second, as I watched the blood ooze “Why?!!” (The rest is unprintable).

We rely on our subconscious to automatically get things done every minute of the day.  And sometimes we get it wrong.  And accidents happen.

So we need to insure ourselves against the risks we all take.  Some impossible to foresee or guard against.  We need to insure ourselves because the totally unforeseen can, sadly, cost our businesses a lot of money.

Employers’ Liability Tracing Office

The Employers’ Liability Tracing Office (ELTO) aims to help identify the relevant Employers’ Liability insurer quickly and efficiently. ELTO is an independent, not-for-profit company set up to provide claimants and their representatives with quick and easy access to a database of ELI policies.

Employers’ Liability Insurance (ELI) covers employers against liability for injuries or disease sustained by employees while at work. Most claims are brought against current or recent employers but problems can arise when a former employer and insurer needs to be traced.

This is particularly common in the case of "long-tail" industrial diseases such as asbestosis and mesothelioma when symptoms take some years to develop.

ELTO has built and will maintain a complete electronic database of all new and renewed ELI policies. ELTO is not a compensatory body but provides a tracing service. Currently over 95% of the ELI market is already signed up as members of ELTO.

To help with this tracing new rules from the FSA require insurers and brokers to collect additional information about employees.

As of April 1^st 2012 this is mandatory although some insurers and brokers have been collecting this information for the past year.

The additional information required is the Employer Reference Number (ERN) of your employees and any employees of subsidiary companies. The ERN is also known as the Employer PAYE Reference. When employers register their first member of staff the HMRC issues an ERN unique to every employer.
 
If you need any help identifying your ERN please just give me a call.

Business Interruption Insurance

Imagine your business burns down.  Your buildings and equipment are insured.  Phew!  But wait a minute - what is going to provide you with an income now? Loss of property is often nothing compared with the loss of income that follows.

Business Interruption Insurance (BII) is probably one of the most valuable commercial insurance policies a company can have. Simply put it’s the insurance that will keep you in business while you put your business back together.

Yes, chances are this kind of disaster isn’t going to happen to you.  Yet, accidents do happen which is why employers liability insurance is needed by law.  You have to consider the risks and insure yourself accordingly.

BII can cover a variety of events that may affect your business.  Not just fire but loss of power, loss of other utilities, loss of a key supplier, loss of a key customer, storm damage, weather related flood damage or a leaking pipe.

BII will compensate you for the reduction in gross profit while you are unable to trade.  This enables you to pay your on-going costs such as rent, electricity and the salaries of critical staff.  Extra Expense can cover your costs should you move your business to a temporary location.

Sadly many businesses that suffer a crisis, directly or indirectly will no longer be trading 12 months later. The flash floods in Devon devastated many businesses, some of which took 2 years to start trading again.

How long your insurance lasts (the indemnity period) depends on your business.  This needs careful thought.  If your business burns down you have to include the time to demolish and clear a site, time to commission the rebuild, time to rebuild, time to re-staff your business and time to get the business back to where it was.  If the specialist piece of equipment 80% of your orders rely on gets damaged, you need to consider the time taken to locate a new supplier, for the equipment to be made and the turnaround time of the supplier who may be backed up with orders for the next 12 months.

Business Continuity Planning (BCP) will help you understand your business risks.  You’ll be able to think through the high and low risk events and how you would manage the business through any event.  A BCP will help your insurance broker understand your risk and get the best policy to meet you exact needs.

Business Interruption Insurance isn’t a one size fits all policy.  It needs serious consideration to ensure you get the coverage you need for how ever long you need it.  Get in touch and I’ll happily walk you through the process.

So you think you're having a bad day?

Winter Weather Preparations

 

 

 Article courtesy of Allianz

 

My name is Dave Wilson and I am an independent Commercial Insurance broker.

My area of expertise is arranging bespoke insurance cover for companies with a turnover of between £1M and £100M in a wide range of industries and professions but more specifically in the High Risk Liability sector such as roofing, scaffolding, waste management, the security industry, haulage, and also in the leisure industry.   

• I will personally visit you and carry out a free review of your current insurance
• Together we will identify the risks affecting you, your team and your business
• I will personally create a programme of covers which will meet your specific needs
• Together we will continue to monitor your needs as your business evolves
• I will provide you with a single point of contact and continuous support in the event of a claim

 

I make sure that my clients get the cover right in the first place and when there is a claim I make sure the insurers honour their promise.

Being truly independent I am free to arrange the highest quality products and services in commercial Insurance and Risk Management with a personal approach you can rely on.

David Wilson, Protecting People, Property & Livelihoods by giving right advice at the right time providing peace of mind.

 

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