Tribunal/ACAS Arbitration - Legal Fees Covered on Home Insurance

happywarmgun

Hi, I learned something today. I just did a quick search on the forum and can find no mention of this since August last year so thought it would be worth sharing as it may be useful info for people in a similar situation to me....

If your redundancy situation looks like it is going to reach the stage of either ACAS arbitration or an Employment Tribunal - CHECK YOUR HOME CONTENTS INSURANCE. Many policies include 'legal cover' and if they do most then include within this representation for employment disputes either at ACAS Arbitration or a tribunal. I have a policy with Endsleigh (Actually, to be precise the policy is in my wife's name - however the insurance covers anyone who lives with her full time - like me!). I was amazed to find these circumstances explicitly covered within it. This is great news for me - it means I can push on with a lawyer rather than doing it all myself (I'm not a member of a Union).

Apparently some credit cards offer the same cover.

Apologies if this is old news to everyone - but I consider myself 'with it' and I did not know this until today so if anyone else reads this and it helps them as much as it has me then I consider this a worthwhile post!

Ewarwoowar2

It is true.

If you've ticked the legal services box on your home contents insurance, most policies allow up to £50,000 legal cover for employment tribunal claims.

colzee_2

Would your car insurance policy also cover you if you took the option of legal cover on your policy ?
I am currentley taken my previous employer to employment tribunial and would appreaciate free advice as I have legal cover on my car insurance policy.
Thanks in advance colzee.

xmbcomperx

I don't think Legal Fees on your car insurance would cover employment. Normally the Legal Cover you take out with your car only relates to car related issues.

My partner was assaulted in his car and we were told by his car insurer that he would have to make a civil claim against the person using the legal cover on our house insurance if we had any.

I pay £22 Legal cover on my house insurance per year and I am currently taking my employer to an employment tribunal, I have £50K at my disposal and an excellent barrister - well worth the money.

The other option would be to contact a union such as GMB and ask them if you can join prior to entering into the redundancy consultation. They will not assist you if you have already started the redundancy consultation procedure, or that is what they told me when I contacted them.

Ewarwoowar2

I've never seen a car insurance policy cover employment legal fees. But, have a read of the policy. It should tell you what it covers. There should also be a number for you to call.

A word of warning to everyone out there. At the moment, the number of claims against employers is going through the roof. This means that more people are making claims on their home contents insurance for employment legal fees. This is not a situation the insurance companies enjoy.

They are increasingly finding novel ways to avoid funding claims. The most common is that the solicitors firms on their panel (who know who's paying their bills) will say that your claim doesn't have good prospects of success.

One way to avoid this is to use your own solicitor at the start. You have the legal right to choose your own solicitor. They will give an honest assessment of your case and should not charge any more than the insurance company's panel solicitor. IMO, an independent solicitor is more likely to fight for your case to be funded that a solicitor on the firm's panel. The insurance company may say you have to use their panel solicitor, but under their own code of conduct, you have the right to choose.

pid2004

On my home insurance policy, I am covered upto £25k for any legal issues. I have used it for employment issues too. They told me that the cover will be £12.5k for me and if I lose, they pay the other's legal fee's too which will be the other £12.5k. It has helped me so much to have this cover. Well worth having the legal cover!

Ewarwoowar2

The employment tribunal doesn't usually award costs against the losing side. That's only in the civil courts. An employment tribunal will only award costs against you if you're case is malicious or unreasonable e.g. you should have know from the start you didn't have a claim and you only brought it to annoy your employer.

JHB_2

Apparently, home buildings insurance covers legal expenses also for employment issues. Alternatively, some solicitors do "No Win No Fee" but the downside is they tend to take 1/3rd plus VAT if you do win.