The majority of nursery insurance policies include a Legal Expenses section that incorporates cover for employment disputes. However, for cover to be operative you must have followed the ACAS Code of Disciplinary Practice and Procedures in Employment or sought and followed advice from your insurers legal helpline. From our experience problems occur when nurseries have not involved the insurer helpline from the outset. It is therefore our recommendation that you contact insurers immediately upon a concern with an employee arising and then work with them every step of the way through the disciplinary process. All insurers telephone calls are recorded but it is important you keep your own internal records detailing what instructions have been given by whom and the action taken.
Employment law is extremely complex and it can be frustrating when you feel an insurance advisor is not giving you the answer you hoped to hear. In can help to speak with the same advisor during an employment dispute and if you are unhappy with any decision, do not hesitate to request to speak with senior consultant at the insurers.
However, if you work closely with the insurer then although it may take a little longer than envisaged, you can find the answer that works for your business.
If you comply with the above, then the insurer will defend your legal rights if you receive court or tribunal papers and then pay basic and compensatory awards.
The ultimate objective is that your business is protected from any potential tribunal costs and awards.
If you would like any further information on this topic then please contact the dot2dot team on 01204 570390.