Former employees increasingly suing for unfair dismissal

Hiscox has warned that in the current economic downturn 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 said it found that businesses were not following the correct statutory procedures when it came to making employees redundant which is leaving employers exposed to significant claims from former employees.

Making an employee redundant requires strict adherence to recognised procedures if a business is to protect itself from suffering the consequences of a disgruntled employee feeling they have been singled out. A former employee might claim discrimination on the basis of race