Insurance for unfair dismissals – Can SMEs afford to trade without it?

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There is a considerable increase recently in the number of news articles reporting court awards against employers who have dismissed employees unfairly. These awards typically run into tens of thousands of euro.

Employment law is a complex area, especially for small businesses who do not have in-house human resources departments. It is advisable that businesses seek specialist advice in this area to ensure that correct procedures are in place, especially when dealing with complex matters such as dismissal of an employee. If correct procedures are not followed to the letter, then the business may find itself liable for compensation payments & legal fees.

For example, there may be significant legal fees & settlement costs arising from a case where a disgruntled former employee felt they were dismissed without being given adequate warnings or where correct (legal) procedures were not followed.

Reasons for a successful claim by a former employee can include:

– An employer’s failure to follow consultation procedures and obligations.
– Employers making staff redundant where the reason for doing so did not genuinely relate to redundancy.

At Martin Insurance, we have 40 years’ experience in providing Employment Practices Liability insurance, which covers for claims arising out of non-physical-injury employment claims such as alleged, wrongful or unfair dismissal, breach of contract, discrimination, harassment, defamation or infliction of emotional distress.

If you would like an insurance quotation, please call us on 049-4332944, e-mail or complete our online enquiry form.

Disclaimer: The material contained is this article is for general information purposes only and does not constitute professional advice.

James Martin
James Martin
James Martin has 16 years of experience as a general insurance broker. He is a member of the Chartered Insurance Institute and has completed a Diploma in Corporate Finance.

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