La Playa warns that Supreme Court ruling means your cover may need review

4/10/2017

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This summer the Supreme Court scrapped employment tribunal fees. We're expecting this to cause a surge in the number of cases being brought against employers. Read on to find out how this could affect your business, and what steps you can take.

What were the tribunal fees for?

In 2013, the government introduced employment tribunal fees. These were intended to reduce the number of spurious or malevolent claims, following a rise in such cases which were harming businesses.

Tribunal fees reduced the number of cases brought against employers by almost 80% in three years.

What's changed?

This summer the Supreme Court ruled these fees to be unlawful, arguing that they impeded fair access to justice. The fees have been scrapped, and the government is having to repay £32m to claimants.

How does this affect my business?

We expect the number of cases brought against employers to rise substantially - and possibly exceed the pre-2013 levels - as a result of the ruling.

This means employers are facing substantial increases in legal and compensation costs for such cases.

How do I stay protected?

If you don't yet have cover in place, talk to La Playa and we can arrange this for you. It's usually an extension to your Directors' and Officers' liability insurance.

If you already have EPL (Employment Practices Liability) insurance in place, then now is the time to review the limits on your policy, and ensure you have sufficient provision for legal and compensation costs.

Have you reviewed your policy limits since the change? Now is the time - delay could be costly to your business. Email hanna.beaumont@laplayainsurance.com or call on 01223 200664 - our advice is always free and without obligation.

La Playa

La Playa has offices in London, Cambridge and New York, and serves specialist niches which are high-growth sectors and frequently span international borders: Media, Arts & Entertainment; Science & Technology; Fine Arts; Private Client

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