Redundancy related insurance claims on the rise | Ireland

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Recent insurance industry reports suggest that failure by businesses to follow statutory procedures when making employees redundant, is resulting in significant claims from former employees.

Employment law is a complex area, so it is advisable that small businesses seek some advice in this area to ensure that correct procedures are in place. If a business has a requirement to make part of its workforce redundant then it must adhere to strict legal procedures. If these procedures are not followed then the business may find itself liable for compensation payments. For example, there may be significant legal fees & settlement costs arising from a case where a disgruntled former employee felt they were incorrectly singled out. The employee could perceive the redundancy process as unfair, or claim discrimination on the basis of race, age or gender.

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

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

Martin Insurance provide specialist Employment Practices Liability insurance cover to protect businesses against claims in this area.

If you would like a 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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