‘Unfair dismissal' claims spike in current economic climate
Hiscox has warned that it has seen a threefold rise in insurance claims over the last quarter from small to medium-sized enterprise (SME) employers being sued by former employees for 'unfair dismissal'.
In particular, Hiscox has found that businesses have not followed the correct statutory procedures when it comes to making employees redundant, which has been leaving employers exposed to claims.
The top three claims Hiscox has seen involve failure to follow collective consultation procedures and obligations, which are necessary when 20 or more workers are at risk; employers not carrying out a fair and reasonable selection process; and employers making people redundant where the reason does not
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