FAQs
Employment Law
Q: What areas do you cover for Employment Tribunal Representation?
A: We can act for employers at employment tribunals in Birmingham, Bristol, and Cardiff.
Q: Do you only act for employers?
A: Our specialism is in acting for employers, but we do carry out work for employees from time to time, providing there is no conflict of interest.
A: Charges will vary depending on how complicated the work is and how quickly we can conclude matters for you. If an hourly rate is quoted we can agree a fixed spending limit and contact you when this is reached to get your agreement to continue. Very few of our clients have a concern about the costs at the end of their case, whatever the outcome.
A: Depending on the nature of the work your case could be concluded in a number of weeks, or it could take several months. A few cases take longer, where the claim takes a long time to get to a Tribunal hearing.
Q: If we win, does the other party have to pay our costs/expenses?
A: Not normally. Employment tribunals only award costs/expenses in exceptional circumstances. However, if these circumstances do apply, we can make an application for costs/expenses on your behalf.
Q: Why should I use your firm?
A: We are highly specialised in Employment Law. Once you have appointed us we will consult you at certain key stages. At the outset, we will want to know what you wish to achieve, and aim to ensure that your expectations are realistic. We will explain things clearly, what the costs are likely to be and update you on progress as work proceeds.
A: You are at liberty to use our services as you wish, and take our advice and then deal direct with your employee and if you able to handle an Employment Tribunal case without representation; however employment law has become far more complex in recent years and it is now usual for solicitors to get involved to ensure greater prospects of success.
Q: What will be expected of me?
A: We can only give you our best advice if the information you give us is accurate and complete. When you attend your first appointment we will ask you to bring proof of identity documents with you so that we can ensure compliance with the Money Laundering legislation. These can include a passport, a photo-card driving licence, a recent bill or statement.
When you contact us we must check that we have not acted for the person with whom you are in dispute (Employee), so we will ask for their identity. This will be kept strictly confidential, as will everything you tell us even before you decide to instruct us.
In order to understand your circumstances and give advice, we will need you to provide all relevant paperwork. Please try to find the relevant contract of employment, any staff handbook, any correspondence or memos, notes of telephone conversations. It may help you when we see or speak to you to have jotted down a history of what has happened with key dates and names.
Q: What is a compromise agreement?
A: A compromise agreement is used to deal with a dispute or possible dispute between an Employer and an Employee. Usually the employee is leaving his/her job. The Employer usually pays a sum of money in return for the Employee agreeing not to take further action in relation to problems that may have arisen in relation to his/her employment. It is essential that the document is carefully drawn up for both parties’ interests to be safeguarded and for the agreement to be legally binding. It is usual for the Employer to contribute all or part of the Employee’s legal costs.
Employer Protection Package
Q. What is the Employer Protection Package?
A. It is a seamless combination of our employment law services and insurance that provides businesses with the most cost effective way to remove the burden of employment and health and safety legislation.
Q. I’m a good employer – why should I worry about the improbability of an employment dispute?
A. The chances of being involved in an employment dispute are already higher than your business incurring a serious loss from fire or theft. You readily insure your assets against traditional perils so why would you leave your balance sheet exposed to this increasing threat? You will see from your local newspapers that companies are having to regularly pay out for employment disputes and that it is not unusual for awards of in excess of £50,000 to be imposed by tribunals.
Q. Newspapers focus on the extraordinary, how much is seriously at risk?
A. The Tribunals Service annual report for 2008/09 shows that the employment tribunals received 150,900 cases and disposed of 99,800 from April 2008 to March 2009. The figures show that, in 2008/09, claims for unfair dismissal were up 29%, for redundancy pay were up 48% and for failure to inform and consult on redundancies were up a massive 153%. The statistics also show that there has been a steady increase in the number of age discrimination claims, with a 29% jump in 2008/09. The limit for awards for unfair dismissal have increased beyond £60,000 and awards in relation to discrimination are still unlimited; if you take into account the legal fees required for your representation as well then your business could be exposing its balance sheet to serious and possibly crippling financial losses.
Q. I am only a small business with a few employees so I’m not high risk?
A. Employment legislation applies to equally to all employers regardless of their size. Unlike big organisations, who can budget for in-house HR advisors and comprehensive risk management, smaller businesses employing less staff are at greater risk as they lack the management time and resources to effectively manage their staff. Fines, penalties or awards for breaching legislation are not calculated in consideration of what a business can afford and this puts smaller businesses at greater risk as they are often unable to withstand the un-budgeted and costly outcome of a dispute with just one employee.
Q. How easy would it be for one of my employees to bring a claim against me?
A. It has never been easier and employees have a greater awareness of their rights and how to play the system. With information on the internet, solicitors buying claims (no win no fee) and the Citizens Advice Bureaux providing free advice (alongside many other free advisory services), today employees need to pay nothing and do very little to lodge a tribunal claim against you. Once you have received notice of a claim you have to respond correctly and the costs then begin to mount.
Q. How much can an employment dispute cost me even if the employee is just trying their luck and I have done nothing wrong?
A. If an employee brings a claim in the employment tribunal, the cost of instructing a solicitor to prepare a response to a claim (ET1 Form) is in the region of £1,000 plus vat. In the event that the case progresses, many thousands of pounds can be easily spent whether on solicitor fees, interview attendance or other costs such as medical opinions. If the case does reach tribunal then the cumulative average cost to include a one day hearing could amount to at least £7,500 plus vat. This cost does not take into account the wasted management time, business disruption, staff moral issues and bad publicity that could result from a dispute.
Q. Surely if someone is just “trying it on” they will have to pay our costs once it has been proven their claim is unfounded?
A. Employment Tribunal rules do not work in the same way as County Court and High Court rules. The employee can have their dispute heard in Tribunal at no cost and your representation costs are normally not recoverable. Also the new grievance and disciplinary rules mean that if you have a made a procedural error in the handling of even those unfounded claims, a Tribunal is likely to find against you. Even if employers win at tribunal they are never really winners.
Q. How does the package work?
A. It delivers a dedicated and effective fixed cost employment risk management solution that makes compliance easy and unexpected costs from disputes a thing of the past. In short we work to make you compliant, we give you expert advice to help manage your staff in ways that are best for your business and we protect your business from the cost of employment disputes.
Q. I already purchase a similar service through an HR company, why is yours better?
A. We are confident that because we are local experienced solicitors whose primary duty of care would be to your business, we will far outperform any other solutions in the market place. In addition to the expert personal nature of our advisory service, the employment disputes insurers have authorised us to handle any claims on your behalf under the policy which means you have seamless risk management and insurance protection of which you can be certain.
We would be happy to talk to you about the comparative advantages of the package above your existing arrangements should you require.
Q. What does the employment disputes indemnity insurance offered as part of package cover and how does it work?
A. The policy will cover the costs of tribunal awards and/or cost of settlements agreed as a result of conciliation proceedings arising in respect of a dispute with a previous, existing or prospective worker. It also covers the legal fees incurred by us in handling an employment dispute and any third party costs or disbursements. Please note that not all employment awards are covered by the policy.
The level of cover will have been selected by you at the time of purchase and will be stipulated in your insurance cover note. This will include the applicable excess and limit of indemnity in respect of each and every claim.
It is a condition of the insurance that you follow our advice.
A full policy wording showing terms and condition is available if requested.
Q. If you give such good advice and I have all the right employment contracts and procedures why should I need insurance?
A. We regularly see cases where making the right decisions as an employer is not enough to prevent claims arising, whether it is as a result of the actions of rogue managers, or just disgruntled employees. Unfortunately some employees are becoming experts at playing the system and spurious claims can still incur substantial legal fees and often require settlement as the most effective method of alleviating a dispute.
It is important to note that under discrimination legislation there is a presumption that employers are liable for discriminatory acts carried out by their employees whether done with or without their knowledge. Awards for discrimination are unlimited.
For this reason employment disputes indemnity insurance is provided as part of the package. This protects you from unforeseen legal costs, settlement payments and possible awards of compensation that are not budgeted for.
Q. I have a legal expenses policy that covers employment disputes already so why should I switch to this?
A. Unfortunately it is common for traditional legal expenses claims to fail because the Insured has breached their policy conditions by not having adequate employment contracts, practices or have inadvertently taken an action that insurers deem to have compromised the defence of a claim. Unless you have had a claim you will probably not be aware of this problem and you should beware that by the time this comes to light it is too late.
If you are interested in finding out more about the pit falls of buying legal expenses insurance please see the last question of these FAQ’s .
Q. Does an insurance policy that covers the legal costs and compensatory awards arising in an employment dispute stop the disruption to my business, bad publicity or wasted time incurred by our staff in having to handle the dispute?
A. No but if you decide to utilise our advisory services, we are able to catch employment issues at the earliest opportunity or even before they start. This stops many claims from developing leaving you to concentrate on running your business. The package is specifically designed to settle problematic disputes prior to tribunal further reducing wasted time and saving you from becoming embroiled in lengthy and difficult disputes.
Q. Will the scheme affect my client solicitor relationship?
A. The basic answer is “no”. We will continue to give you independent expert advice and to act only in your best interests. We can advise you commercially and in addition clearly explain to you from the outset how your insurance cover will react when you are contemplating all your options for handling employees.
Q. How much does it cost?
A. A lot less than you think – just consider the cost of defending your business, funding unbudgeted compensatory awards and the disruption to your business. We are confident that you will find the cost of this essential protection excellent value. Remember, Directors can personally be at risk for failing to implement compliant procedures that protect employees’ rights – can you afford not to talk to the experts?
Q. Why shouldn’t I buy employment disputes legal expenses insurance without properly risk managing my employment practices?
A. Nearly all polices exclude claims if there are no reasonable prospects mounting a satisfactory defence (this is determined by your insurer). If you do not operate with the following employment practices you will be very lucky to have your claim covered and you will find out when it is too late!
• Clear Set of Terms and Conditions
• Clear Employee Handbook
• Clear Policies and Procedures
• Clear Letters and Forms
• Clear Database and Records
• Continuously updated documents
Unless you apply risk management in these areas you are buying insurance that will not be effective.
In addition if you take any action that could harm the defence (again in the opinion of your insurer) you will negate your policy cover. For this reason it is essential to have access to qualified advice on your day to day employment matters.
Your reactionary insurance may cover the consequence of a financial loss but it will not cover
• Business disruption & Wasted Management Time
• Bad publicity or staff relations
These can be very substantial costs to a business that only early professional advice and adequate risk management will avoid
Your insurer may offer a helpline but this may only go as far to advising you to protect their insurance policy.
Without an adequate advice line how can you be sure:
• that you receive independent advice on consequences of business decisions relating to your employees? It is easier for insurers to advise you to take no action rather than expose their policy and this can be restrictive.
• exactly how your insurance cover will be effected prior to taking any action?
• you do not negate your insurance protection unwittingly when an incident arises?
• what you knew last year is the same this year as employment legislation is constantly shifting?
Q. If you have employment disputes insurance, who assists you in handling your claim?
A. Many clients who have legal expenses insurance still have to pay an employment solicitor to handle their claims and present their interest to the insurers. We hope that these questions and answers have assisted in explaining some of the key benefits of this professional package. We strongly believe the combination of expert solicitors and insurance provides our clients with the best solution to this growing problem area for businesses. If you have any further questions that do not appear in this document we would be more than happy to answer them for you.
Resolving Commercial Disputes
Resolving Commercial Disputes
A: We are not able to estimate your likely costs without full details of your dispute, including witness and documentary evidence. However, we will give you a clear estimate of your likely costs at the earliest practicable time and will keep you informed on costs throughout.
Q: Can this be dealt with on a 'no-win-no-fee' basis?
A: For commercial disputes our standard charging rates apply (Terms & Conditions) but we are prepared to consider offering a 'no-win-no-fee' arrangement in those cases which have a reasonable prospect of succeeding.
A: Until we have a full understanding of your dispute we cannot estimate a likely timescale. However, we will advise on timescales as soon as we are in a position to do so.
Q: Can I come in and talk to a 'real person'?
A: Of course. A great deal of communication can be dealt with by telephone, letter or email, but a personal interview can be arranged and is often helpful.
Q: Can we just send out a demand letter for you?
A: We are obliged to comply with the Money Laundering Regulations which require us to verify clients' identities before we start any work. We understand that this might be frustrating but we cannot dispense with the requirement. It helps a great deal if you bring or send the necessary identification documents as soon as we request them.