Are you ready for CCMA? Can your business afford an employment lawsuit?
South Africa regrettably is known for a relatively active labour environment. There are over 200 000 cases reported to the CCMA and Bargaining Council’s each year with the vast majority of these cases being for unfair dismissal.
Employment practices liability insurance, known in the trade as EPL insurance or EPLI, provides coverage to employers against claims made by employees alleging discrimination (based on sex, race, age or disability, for example), wrongful termination, harassment and other employment-related issues, such as failure to promote.
Large corporations typically have substantial employment practices insurance coverage in place and are prepared to deal with just about any employment lawsuit. However, small or new businesses are often the most vulnerable to employment claims. That’s because they usually lack a legal department or employee handbook detailing the policies and procedures that guide hiring, disciplining or terminating employees.
Why place this cover?
• Even in a business where there is a functioning industrial relations or human resources department, the risk of a labour dispute cannot be eliminated.
• Every time there is a dismissal, it is highly likely there will be a dispute lodged with the CCMA or Bargaining Council. Even if the case is successfully defended by the employer, there are legal and consulting fees involved. If a case is referred to the Labour Court, the legal fees start stacking up very quickly.
• If the employee is successful in their application, the CCMA could make an award of 12 months salary. This could hurt any size business.
• Wilful or malicious acts by the employer
• Deliberate failure to follow own HR or IR procedures
• Bodily injury and COID related claims
• Minimum wage violations
To obtain a quote , contact us on +27 11 484 9401
Courtesy of : Genlib News