Why your incompetence will lead you to a tribunal!
Why your incompetence will lead you to a tribunal!

Why your incompetence will lead you to a tribunal!

Why PlusHR don’t offer tribunal indemnity

I’m often asked why don’t PlusHR offer employment tribunal indemnity insurance when many of my competitors make a virtue of doing so? My answer is always the same…if you follow the advice we give you, you won’t end up in tribunal. It is as simple as that. On the other hand if we provide the wrong advice and you follow it and lose a tribunal then my professional indemnity insurance is there to protect both of us.

Why do other HR companies make such a big story about selling the indemnity insurance?

It really is simple, they are relying on your fear of being held accountable for the wrongful dismissal or perhaps the discrimination of an employee and therefore ending up with a tribunal payment against you.

However, why should you end in tribunal if you have followed the guidance of professionals supporting you?  The simple answer is because you chose to go your own way when advice has been given you.  If you are the owner or director of a company then it is your prerogative to do as you choose, but as with everything in life your decisions have consequences.

So that leads me back to why do my competitors offer indemnity insurance and what exactly does it cover? 

Well I will let you into a secret… a few years back I undertook a secret shopping exercise posing as a perspective client for many of my competitors. Apart from a very small number of my own profession accusing me of being immoral for undertaking the exercise, what I found out was really quite interesting…

I questioned a sales person in detail with regards to the nature and cover of the indemnity insurance and what was claimed was fascinating. I asked a really simple question and that was to try to establish if the indemnity insurance still applied if I chose to ignore his companies guidance and consequently end up losing a tribunal case?  His answer at the time was “yes” it did apply!  This, as I’m sure you can imagine, was a complete surprise to me, and in all honesty, I’m not 100% sure if the claim is true or just a sales trick but you never know it may well be. If you are looking at the indemnity insurance as a deal breaker for you, it may we’ll be worth asking the same question?

I guess you might by now be asking yourself what is the point that I’m trying to make?

Again it is relatively simple, and that is don’t get sucked in by the HR companies that offer a protection that in all honesty you don’t need. Ask yourself an equally simple question, do you expect your accountant to indemnify you against financial advice they may give you? I suspect not, so why do you expect it of HR companies? Perhaps we are back to the fear of the unknown? You fear that people and HR issues are to litigious now days, but again ask yourself this…how many companies go bust because of employment tribunal decisions and how many go under because of poor financial decision making by directors and owners? I suspect I know the answer, and I would assume that it is many many more go under because of poor business decisions rather than people decisions.

Then again that as I explained it is your decision.

Speak to the HR Experts

If you are thinking about outsourcing your HR requirements, with so many HR providers in the market you may wonder which one is right for your business. With nearly a decade of HR industry experience, take a look at PlusHR’s comprehensive checklist to consider when outsourcing your HR. Our fully CIPD qualified HR Managers are on hand to ensure you are on the right path. Get in touch now by calling +44 (0)20 3751 4422 or email This email address is being protected from spambots. You need JavaScript enabled to view it..

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