How can employers prevent a tidal wave of litigation in 2021?

How can employers prevent a tidal wave of litigation in 2021?

70% of employee claims management firms have already seen an upturn of new claims in January 2021 – and expect to see a 40% increase linked to Covid-19 over the course of the coming year.

The findings come for research by risk management and insurance brokerage firm Gallagher among 200 claims management companies, 1,000 senior business leaders and 2,000 employees. 12% of claims so far have been related to employees who feel overworked or unsupported in their role. 9% were linked to poor working conditions, including a lack of access to PPE. 8% involved cases of alleged discrimination and 4% to unfair dismissal.

From complaint to legal action

Research from Gallagher has also examined the level of internal complaints being made by staff. Most commonly these were found to be around concerns about lack of safety planning and provision in workplaces, the fear of catching Covid-19 at work, and wrongful termination of an employment contract.

Business leaders are acutely aware of the dangers. 52% admit to being “seriously concerned” about the potential of being sued by staff who believe they contracted coronavirus on their premises.

Talking culture

“It’s a basic requirement for organisations to be aware of the latest advice on keeping workplaces safe to work in, and to avoid making unreasonable demands on their people in terms of going back into workplaces when it’s not necessary,” said EAPA UK chair Eugene Farrell.

“But the best employers will be the ones who work on creating a positive and genuinely supportive working environment – whether from home or in the workplace. Offering an EAP and actively building up awareness of EAP services is an important part of that culture.

“Litigation in these times is a threat to any employer. But resorting to legal action will always feel far less necessary, or even appropriate, among those staff who know they can raise their issues, that they will be listened to, and that they’re part of an organisation with an interest in and commitment to wellbeing.”

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