Employment claim insurance - the pitfalls!

I have recently been approached by a number of clients who had signed up to an insurance backed employment scheme and now wish they hadn't. The idea is that for a reasonably large monthly premium payment (and often linked to a lengthy term) the client gets employment advice on the basis that assuming it is followed the insurer will pick up any successful unfair dismissal or other employee claim. The problem is that as these claims can be expensive the insurer will want to be as cautious as possible when dealing with a misbehaving employee. However most employers know that there will be occaisions when an employee is being so disruptive that whilst the grounds for dismissal may be less than 100% the benefits to the business merit taking the risk.Unfortunately if the insurer does not agree the employer can either be stuck with the employee or take the decision to dismiss and lose the benefit of the expensive insurance cover. It seems to me a better option to put some straightforward employment policies in place and take advice from a specialist lawyer if a difficult situation arises. If you then want to take a punt you can do so and I suspect that with many employers if they simply put a sum equivalent to the premium payments in a pot to pay any claim that may arise they would still make a profit! The trick is to have simple policies in place, follow them and take advice before rather than after you act. If you prefer this approach my colleague Marsha mrobinson@tolhurstfisher.com would be delighted to check you have the right polices and to support you in dealing with difficult employees.

Lease extension - I can't sell because my lease is too short!

One of the problems caused by the explosion of house convertions across Southend during the 70s was that thousands of leases were created which seemed long at the time but now don't! This can be a nightmare because if too few years are left it can be impossible to get a mortgage or sell. For once the government introduced some sensible legislation allowing lessees in that position to force their landlord to grant a lease extension in exchange for a reasonable payment. However beware! The process can be drawn out so don't wait until you want to sell to try to extend as it could take months - think ahead. If you want to know more then the rules are set out in more detail on this helpful website http://www.leaseholdlaw.com/

Where there is a will there is a way!

Learnt an important lesson about following my own advice today - having just settled a personal injury claim resulting in a nice cheque for the client I expressed my horror that he had no will - making the point that with a dependent wife and minor children he not only needed to make a will but review it from time to time. I explained that a straightforward will costs as little as £100 + vat and was worth reviewing every 5 years or so. My partner Mark Francis mfrancis@tolhurstfisher.com is sorting it out for him but it then occured to me that I had not looked at my own will for years and having hunted it out and blown the dust off realised that it was horribly out of date - didn't even mention the children who are 22 & 18! I've sorted it today but don't think I better own up to the wife and kids.