For business owners, it’s not so easy to quantify the risk and potential costs of a tribunal claim, so they go for peace of mind, and take the insurance.
The reality is that there are many steps in the journey to an employment tribunal, and an employer who has sensible HR policies and procedures in place, and follows them, is at a very low risk of losing an employment tribunal claim.
Even if the employer loses the claim and has to make a compensation payment, the costs are often not as high as expected.
The Sagegreen HR team can explain the rules, and help managers to take each step carefully, ensuring that employees are treated fairly and that the needs of the business are also met.
If managers are not capable of handling an issue with performance, or there is a persistent problem, such as bullying and harassment, we can provide training, coaching and even hand holding to help them.
If matters are so serious that the employee is likely to take a claim to tribunal, we can help the business to evaluate the risk of a successful claim, and mediate between the employer and employee. If that doesn’t work they can negotiate the terms of a settlement agreement, making a financial payment to the employee to leave the business and waive all their rights to make a claim. This is not desirable, and costs money, but still salvages the situation.
If the tribunal claim goes ahead, there will be legal costs, but much more significantly, there will be huge management time lost in the preparation and aftermath of a tribunal – these costs will not be covered by the insurance. The impact on employee motivation, and even on management morale, which ultimately hits the bottom line of the business, doesn’t have a price, and therefore isn’t covered by the insurance.
All our retained clients gain the benefit of our unique HR indemnity insurance. With Sagegreen HR being the insured party, your relationship with your dedicated HR manager continues, so as long as you follow our commercially sound advice you will benefit from our extensive hassle free cover.