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T: 01935 389812   E: enquiries@straightsolutions.co.uk
T: 01935 389812
E: enquiries@straightsolutions.co.uk

410 new Employment Tribunal claims a day –the new ‘normal’

410 new Employment Tribunal claims a day –the new ‘normal’410 new Employment Tribunal claims a day –the new ‘normal’ 

Proof retainer services work

We are beginning to sense cautious optimism. Nobody is denying that difficult circumstances will continue to prevail for a while, however we are focussing hard on helping businesses and organisations find a way back. 

The ‘advice and retainer’ business model was designed so that lawyers could provide affordable HR advice ‘on demand’.  Those using this model were still able to deliver a consistent service to their clients whilst ensuring a regular cash flow was maintained. Employers who also sought extra comfort of specialist wrap-around Tribunal Insurance will feel particularly pleased at their foresight. But employers who did not have the foresight to pre-purchase their professional HR service found themselves at the back of the line, forced into making a ‘distressed’ purchase, if they could afford it.

ACAS notifications on the rise
ACAS notifications have been rising at a rate of 23% per annum. This year (without any brakes on meritless claims) we expect to see at least a 30% increase year on year. It’s too early to predict Covid-19 ‘s effect on Tribunal claims, but we fully expect it will increase them further. Because many claimants have learnt to ‘game’ the system we see fewer and fewer claims being settled and far more requiring the court to decide. ACAS stats show that a third of ET1’s will go the full distance leaving the court to decide on the outcome. This means in the coming year we expect to see 150,000 ACAS claims and with 14,000 of these going the full distance! That’s 413 new claims, 115 Tribunals and 38 final judgments every single day!

ACAS figures
*ACAS figures from June 2019 onwards are projected

How will Covid 19 affect the insurance market?

The immediate reaction from Insurers has been to increase premiums, rigidly apply the ‘reasonable prospects’ test (often requiring 65% merits), increasing excesses (£2500 is now common) and to introduce or extend ‘waiting periods’ for new claims up to 180 days. One insurer even tried to impose a Covid-19 exclusion mid-term until broker reaction forced a rethink. 

As for us…

Renewing clients of Straight Solutions have faced no such issues as we have generally ensured terms are unaltered. This is a credit to the continuity and certainty provided by a partnership between the market-leading specialist broker and one of the world's largest legal expenses insurers. Straight Solutions can boast over two hundred clients who have maintained continuous insurance with us for at least 10 years. Our advice to employers and solicitors thinking about combining HR services and employment protection insurance is very simple – sign up now!  We think premiums will have to increase as the market hardens in the next few months and insurers will become increasingly selective about who they insure. For lawyers new to the retainer business model and Employment Tribunal insurance, a lot has changed in the last few years. A Straight Solutions Employment Protection Insurance policy offers: 

  • Certainty that insurance will work as intended, every time.
  • Bespoke insurance focused on client needs and solicitor requirements. 
  • No ‘prospects of success’ clause to trip up claims.
  • Selected limits of indemnity and ‘blended’ claims handling rates bespoke to each client. 
  • No marketing or sign-up fees.  
  • No minimum number of insured. 
  • No requirement to use us exclusively.    

We stand on the quality of our policies, the terms provided, and exceptional service levels and we will not be beaten on like for like insurance.


Contact Us

T: 01935 389812
E: enquiries@straightsolutions.co.uk

The Lime Loft,
Priestlands Lane,

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