M&G PALADIN
EMPLOYER PROTECTION SCHEME

What price peace of mind?
 

Employment law plays a fundamental part in the running of any business. The moveable feast that is European legislation has meant that employers have had to cope with unprecedented levels of litigation resulting in compensation of thousands of pounds being awarded to employees.
With nearly 30 million people in employment in the UK the likelihood of an employer having to deal with a grievance or disciplinary issue is almost inevitable. If this is mishandled, the wealth of companies prepared to take on the employee’s litigation will result in a tribunal claim. The “no win no fee” concept has strengthened the employee’s hand by making the litigation risk free to them. Couple this with the Tribunal’s ability to award sums in excess of £60,000 (even unlimited in certain cases) to an employee and this adds to the perception that “compensation culture” is alive and well in the UK.
A rise in the number of small businesses has coincided with a 30% rise in claims. In the year 2005/6 the level of claims rose from 86,000 to over 115,000. Of these over 40% were for unfair dismissal and 27% for discrimination. The average unfair dismissal award was £8,679 (up from £7,303), race discrimination £30,361 (up from £19,114), sex discrimination £10,807 (down from £14,158) and disability discrimination £19,360 (up from £17,736). Interestingly, the highest award made by the Tribunal was in a race discrimination case where they awarded £984,465. The costs of defending the simplest of proceedings would be £4,000 and escalates rapidly upwards depending on the complexity of the case. Smaller employers with less than 10 staff have seen the highest levels of claims issued as these are the least likely to have a dedicated HR resource. Statistics show that a business is more likely to have an employment claim made against it than a claim due to fire or theft. Can your business afford to become the next newspaper headline advertising the fact that a huge award has been made against you? Can you afford to pay immediately not only the compensation payable to employees but also legal costs?
Help is at hand
There is a simple and cost-effective way to ensure that your business does not get caught out in employment disputes. M&G PALADIN is made up of a number of core components each designed to minimise risk. Assured of the personal service of a fully qualified and specialist employment lawyer, M&G PALADIN offers employers the opportunity to establish a working relationship with a local law firm. The ability to pass on your employment/HR concerns to an employment department ensures that problems associated with defending claims are minimised from the very outset. Our commitment to provide the best possible service extends to the use of specialist Barristers for hearings at Tribunals. All this for a fixed price.
1. The Audit A specialist employment practitioner at M&G will carry out a comprehensive review of all your existing employment documentation. This enables us both to understand your business and to ensure that it is compliant with the latest legislative requirements. We will make recommendations where deficiencies have been identified and make the necessary changes to make sure our indemnity insurance is effective. The spectre of automatic unfair dismissal for defective documents and procedures cannot be underestimated. 2. The Telephone Helpline Once the Audit has been successfully completed, you will have unlimited access to the same specialist lawyer who dealt with your audit. This lawyer is not only experienced in the finer details of employment law but through personal contact also knows your business and its needs. M&G PALADIN will not expose you to the vagaries of an impersonal HR consultant who may be unqualified, working from a call centre, and whom you may never meet. The ability to contact your lawyer via direct e-mail and direct dial telephone are key parts of the personal service.
3. The Indemnity Insurance Even employers who win at Tribunal end up losing because they rarely recover the costs of defending themselves. Often disgruntled staff, the disciplining of workers or friction between employees results in a Tribunal claim being lodged through no fault of the employer. For these reasons and to provide absolute security to back up our services a comprehensive insurance policy can be included to cover: þ     our costs in representing you þ any third party costs þ     settlements and compensatory awards The policy is flexible and can be tailored to match your requirements. If a claim should arise we are fully authorised by insurers to act automatically and manage the claim on your behalf This financial certainty will enable you to budget your employment/HR costs and in real terms this will often result in a significant costs saving. Full details of the policy wording are available on request.
4. The Training Once a year we will provide training to selected members of your staff on any employment topic chosen by you. This will ensure that matters you consider important will be communicated to your employees based on your own business needs.
Added Value Extras
M&G PALADIN offers you more. Our aim is to educate, thus allowing you to better manage your workforce. A balanced relationship between employer and employee will not only avoid disputes but also help with productivity. To this end we will provide: Monthly specialist Bulletins offering invaluable insight into developments in employment law and HR fields Access to detailed Employment Law Guides on the main issues encountered in the workplace Attendance at your premises when a face to face meeting is necessary Invitations to free Seminars on topical employment issues Participation for you and your employees in our Privilege Card Scheme entitling you to a 10% discount on legal fees for all services offered by M&G (except for employment matters) Loyalty Bonuses for renewals in years 2 and 3 (based on claims history during the preceding years)
What will it cost?
Our fees for the Audit and Telephone Helpline are fixed and competitive. For your convenience and to assist with cash flow they can be paid quarterly by Direct Debit. Should you opt for the Indemnity Insurance element of M&G PALADIN, the premiums for this can be paid monthly. Both these sums are tax deductible as a business expense. The optional insurance premium is based on: þ Annual Payroll þ Business Sector þ Number of Employees þ Claims History þ Chosen Policy Limit and Excess
How do I apply?
If you are interested and would like to receive a no obligation quotation please click here to complete the form. This will enable us to give you an idea of the likely costs involved. You may also obtain guidance on the scheme from our answers to frequently asked questions (FAQ’s) which are available by clicking here So whether you are looking for an EMPLOYER PROTECTION SCHEME for the first time or your existing policy is coming up for renewal, contact us and let us show you why M&G PALADIN is the product for you.
For more information about M&G PALADIN please contact Dharmender Singh Sall on 01865 268602 or dharmender.sall@marshallgalpin.com

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