CLAIMS CORNER

The following is an example of a recent Employment Dispute claim we handled under our Family Legal Expenses Insurance (LEI) product. This particular claim was complex, which resulted in high claim costs, but achieved a significant result for the policyholder, demonstrating the importance and value of LEI.

The policyholder was employed in a senior management position for a financial services company, however was dismissed after only six weeks of employment. No dismissal process was followed, and the policyholder was initially dismissed with immediate effect. The company did however, reassess their position and placed the policyholder on gardening leave for a period of three months.

The employer reasoned that the policyholder had struggled to adjust to the nature of the team and that her style did not fit in with their requirements, causing tension throughout. The policyholder denied this, and her various colleagues only spoke positively of the impact that she had on the department and other areas of the business in this short period of time.

The policyholder believed that the true reason for her dismissal was due to the number of protected disclosures she had made, following a series of malpractices that had been discovered.

The policyholder contacted us for help under her Family LEI policy. Our panel solicitor was instructed and began proceedings against the policyholder’s ex-employer.

After a period of negotiation, the case eventually went to an Employment Tribunal, and was settled in favour of the policyholder. She was awarded compensation in the form of £250,000, which was a significant result.

In this case, the legal costs reached the limit of indemnity under the policy of £50,000 – all of which was covered by Arc Legal.

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