Released On 8th Dec 2020
Lowering Employment Practices Liability Risks
Employment practices liability insurance (EPLI) is a critical type of cover that provides various protections for policyholders. Employers face a variety of risks related to employment practices liability claims. These claims became more common every year in the UK between 2015 and 2018. An EPLI policy can have a major impact on offsetting the costs and losses of potential legal action.
There are a variety of laws in the UK that employers must abide by in order to ensure that they are providing and maintaining a suitable work environment for their workforce. These laws—such as the Employment Act 2002, Race Relations Act, Disability Discrimination Act, Sex Discrimination Act and the Equality Act—are intended to hold employers accountable for potentially unjust or irresponsible behaviour.
An employment practices liability claim can have a devastating effect on not only an organisation’s finances, but also its reputation. This means that an EPLI policy is not only a valuable level of protection for an employer in the present, but also in the future.
- Wrongful dismissal -These claims stem from an employee alleging that their employment was unlawfully ended by their organisation
- Constructive dismissal -In this type of case, a former employee who has resigned from their position alleges that they were forced to leave due to their employer committing unacceptable conduct.
- Discrimination -These cases are based on allegations that an employee has been discriminated against, such as on the basis of gender, race, religion or sexual orientation.
- Misconduct -Misconduct claims stem from situations in which an employee may have violated an organisation’s rules or policies, but their dismissal was not handled properly.