Employment Insurance Objection Handling 1.0
“I don’t need HR support, let alone employment insurance”
“I have never had a Tribunal – doubt I ever will”
It’s a common objection - a client that has never had a Tribunal thinks that it is impervious; nothing has happened so they think it never will. They forget there is now no handbrake that can be applied to Tribunal claims, it costs nothing to make a claim and buying legal representation ‘after the event’ is ten times more expensive.
Claimants have nothing to lose
Claimants have nothing to lose, making a claim costs them NOTHING, but for your clients to defend themselves properly it can easily cost a small fortune. And, with no-win-no fee solicitors increasingly getting behind what for your client is cost free litigation (if your client wins they are not likely to recover their costs) the danger of budget- busting employment claims is real and present danger.
Employing people = Risk
They neglect to see that employing people opens up the company to a wide spectrum of risk. At one end, the risk is of completely unlimited liability as there is no upper limit on what a Tribunal can award for discrimination. At the other extreme, spurious accusations might be designed to get an extra few extra thousand pounds towards Christmas shopping or a holiday.
Management Time and Stress
In addition to the costs of litigation to your client, they may also overlook the management time and stress of dealing with HR issues. They may also think that with a little knowledge and an on-line template they can stay in front of a specialist legal subject all on their own.
Protect the Balance Sheet by outsourcing HR costs and legal risks
To a company, an employment claim can be the difference between profit and loss, dividend or no dividend – but it is an easily avoidable problem. How? Simply, out-source all of their HR costs and the legal risks that go with them to HR professionals on a fixed cost retainer with a seamless insurance. Balance sheet protection for a monthly fee that is far more affordable than either running an unlimited risk or hiring your own in-house team to handle HR issues.
Having a specialist on hand for any and every issue, no matter how big or small will prevent costly and time-consuming legal disputes that would otherwise tie up management time and damage the balance sheet.
The HR Balance Sheet
Vexatious claim. Cost to claimant £0
Refuse to engage or settle. £0
Insist on day in court
Allegation of discrimination £0
Add “subject Access Request”
Claimant proves dismissal £0
Claimant proves discrimination £0
Lawyer assessment £300
Prepare and attend Court. £5000
Solicitor and Barrister one day - minimum cost
Tribunal escalates to 5 or 10 day hearing £20,000
due to the the added complexity of the cases.
Legal fees now in excess of…
Award costs average £12,500
No limit on what the court can award £40,000
depending on the effect of the discrimination,
awards of 40K are not unusual.
Published: 6th August 2019