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A nationwide network of lawyers provides the legal service, However, solicitors are not usually required except for prosecution cases, or those tribunal hearings involving a detailed point of law.
Cost is always relevant. The premium, which covers all elements of the scheme, is based on a percentage of the total annual wage-roll, apart from firms with less than ten employees, where the cost is £8 per head. Premiums vary between 0.10 per cent and 0.25 per cent of the wage-roll, dependent on the size of the company. The premium is claimable against income or Corporation tax.
The indemnity limit per claim per employee is £12,000, so as to cover the £11,760 maximum award figure, with an aggregate limit of indemnity of £250,000 per annum.
It should be noted that the cover does not extend to fines, penalties, or costs which the insured company may be ordered to pay by a Court of Criminal Jurisdiction in support of a de
liberate and intentional criminal act or omission.
A co-insurance clause is incorporated into the policy. This is to the effect that the policyholder bears 10 per cent of any claim, with the insurers paying the remaining 90 per cent. This helps to keep down the cost of the scheme and encourages cooperation in settlement, thus improving employer/employee reSations, One aim of this insurance scheme is to relieve the employer of as much of the workload as is feasible, thereby enabling him to concentrate on his main task, ie running his business, The consultant assigned to a case will take it over from the moment the complaint (Form IT 1) arrives. He will take statements, prepare the case, and generally attend to procedure, keeping the employer informed throughout. He will also represent the company at any conciliation proceedings or tribunal hearings, again relieving the employer and his senior staff of a demanding and unpleasant duty.
The scheme is particularly appropriate for small businesses without personnel officers or specialised industrial relations and tribunal experts.
However, it also has considerable application for the larger enterprise wishing to take advantage of this specialised assistance without carrying the overhead.
Many employers are unaware of the powers possessed by the Industrial Tribunals, or of the procedures laid down. When a case arises following a grievance put forward by an employee, the onus is on the employer to show that he acted reasonably in dismissing the person.
If the tribunal is unable to accept the employer's explanation, it can order him to reengage the person or give compensation for loss of the job. But if a company has taken out employers protection insurance, there is personnel and legal advice readily available from the outset.
For further details of the scheme outlined in these notes, contact should be made with Employers Protection Insurance Services Ltd, P0 Box 111, Sutton, Surrey (phone 01-661 1616). The other company transacting a scheme on similar lines is DAS Legal Expenses Insurance Co Ltd, Dulverton House, Redcliff Hill, Bristol B51 602 (phone 0272-290321).