Employment Tribunal Cases’ Prevalence Makes Insurance Cover Highly Advisable
The six-figure sum awarded to 50 Deliveroo food-delivery couriers earlier this summer should make other employers sit up and take notice, if they wish to avoid picking up a big bill as a result of an employee claim.
In mid-July, Deliveroo settled a case out of court, which concerned the entitlement of the 50 couriers to the legal minimum wage, paid holiday leave and other rights, all of which Deliveroo had not granted, believing the workers to be self-employed contractors rather than employees.
Rather than allow this case to go before an employment tribunal, Deliveroo accepted the couriers’ claim.
Such cases are becoming increasingly common in the fluid 21st century employment market. Employers operating in the food sector should be constantly on their metal when it comes to employment law. Even if they are not at fault, merely having to go through the proceedings associated with a tribunal can hit the bottom-line extremely hard.
A key way to prevent such financial impacts is by taking out legal expenses cover. Few businesses are devoid of any friction between directors or owners and the workforce, whilst running a business involves negotiating what can be a legal minefield. Fast-Moving Consumer Goods (FMCG) is a fast-paced world and work and organisational pressures can fuel disputes, particularly when employment law and legal rights are so difficult to grasp at times.
When a business buys legal expenses cover, they actually acquire peace of mind, knowing they have a safety net to call upon, should any future disputes require a legal defence. It can be invaluable to have professional representation at hand, offering advice, support and guidance to the policyholder.
Resources are quickly eaten up by long-drawn-out employment tribunals and it can be difficult for a business owner to handle these alone, trying to interpret laws and legalese. However, legal assistance can be hugely expensive, which is why a legal expenses policy that can cover such costs is such a godsend.
Some of the biggest names in business get employment law wrong, which should ring alarm bells in your business. If you wish to safeguard against future issues, and ensure your points are put across at any tribunal that emerges, get in touch with us and allow us to point you in the right direction of professional help.