The following claims example demonstrates the benefit of our Employment Disputes cover under a Commercial Legal Expenses policy.

The insured, a small office business, received notice of a racial discrimination claim from an employee who recently resigned from their position. The employee had wanted to rescind their resignation, however this was refused by the business.

The employee claimed that the business refused to rescind the resignation on the basis of racial discrimination, and was seeking more than £30,000 in compensation. The business however was adamant that the correct procedures had been followed, and submitted a claim under their Legal Expenses policy to defend the matter.

Arc Legal appointed their panel solicitor to defend the business. The case proceeded to tribunal but was dismissed by the judge, on the basis that there was no evidence supporting the ex-employee's claim.

All legal costs were covered under the Legal Expenses policy.

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