What does EPL stand for?
EPL stands for Employment Practice Liability
What is an EPL?
Employment Practices Liability Insurance (EPL) provides protection in respect of legal costs and expenses, as well as tribunal awards for a wide range of employment practice violations including unfair dismissal or discrimination on grounds of race, colour, ethnic or national origin, religion, creed, gender, sexual orientation, disability, appearance, age or marital status.. It also covers questionable or unfounded allegations which can be just as costly to defend.
How does an EPL work?
Noble HR Solutions provide you with advice and support on all aspects of your HR requirements. Providing you follow our advice the EPL Policy covers your legal expenses and any compensation awarded in a Tribunal, up to a maximum of £2 million, in the event of any legal action taken against you by an employee or ex-employee.
What happens if I don’t take or follow the advice given?
If you do not take our advice or if you do not follow the advice given you will still be covered by the policy, but you will have to pay the policy excess which is £3,750, however, this includes your defence costs.
What type of companies can use this policy?
Private Limited Companies registered in the UK with an annual turnover of up to £50 million.
What if my turnover is in excess of £50 million?
If you are a Private Limited Company with a turnover in excess of £50 million you will need to complete the extended proposal form. The cost of that EPL policy is provided on a case by case basis.
I have used similar packages before but the support was so restrictive that effectively I wasn’t allowed to manage my staff, how is this different?
Many companies provide Legal Expense Insurance (LEI) which quite often is a telephone support service. The problem inherent with LEI policies is that in effect to benefit from the insurance, the insured basically delegates the decision making on HR issues to an often very cautious adviser. In most LEI policies, the interests of the adviser are aligned to the insurer, rather than the insured, which can mean that extremely cautious advice is given, in order to protect the interests of the insurer.
How much does it cost?
Policies start from £300 (plus Insurance Premium Tax & VAT). The cost of the policy is based on your annual turnover and the limit of cover. For example a standard policy for a Limited Company with a turnover up to £1 million who have a limit of cover of £250,000 is only £300 (plus Insurance Premium Tax & VAT).
What do you mean by the term ‘limit of cover?’
That is the maximum level of cover, including costs, for a single claim. The maximum compensatory award given to a claimant for an Unfair Dismissal Claim, via an Employment Tribunal in 2010/11 was a staggering £181,754, with the average award being £8,924. These costs do not include the management time and effort required to prepare a defence or any legal fees.
What if I am planning to make redundancies in the coming months?
We recently had a client who was proposing to make 10 people redundant during the year their premium was only increased by £100 to take account of that extra risk. Minor things like planning to address a particular poor performer in the year do not normally affect the price.
Who underwrites the EPL policy?
This EPL policy is provided by AXA Insurance UK plc who are authorised and regulated by the Financial Services Authority (FSA). This can be checked on the FSA’s website at www.fsa.gov.uk/register
What is the relationship with Noble HR?
To validate the EPL policy, Noble HR Solutions need to be the source of your external HR advice & support.
What does Noble HR Solutions charge?
We charge an hourly rate for the advice & support provided, however, we only charge for the actual time used. So if it only takes 10 minutes you will only be charged for those 10 minutes. Our hourly rate is between £100 & £150 – this rate depends on whether we work on a retainer basis or on an ad-hoc basis.
Does Noble HR Solutions have a minimum contract term?
No, we do not, however, to benefit from our lowest hourly rate you need to work with us on a retained basis. The retained service is available from the equivalent of 3 days per month for a minimum period of 3 months, with one month’s notice. Discounts will be available for a retained service that exceeds 12 months.
What’s in this for me?
Peace of mind that the maximum amount that you could be liable for if an employee takes you to an Employment Tribunal is £3,750 & actually could be zero – if you follow our advice! This means that you can manage your business more effectively without feeling overly burdened by employment legislation.