Act targets compensation culture
Pub bosses who have paid out injury claims to disgruntled employees may be helped by a restriction to the 'no win, no fee' regulations, say experts.
Legal experts from Alliance Corporate Risk Management say the Compensation Act, to be launched next spring, will reduce the possibility of being forced to pay out compensation even when no fault can be proven.
David Jacob, group claims manager for the company, said: "A lot of claims faced by employers under the present 'no win, no fee' system come from disgruntled former employees two or even three years after they have left the business.
This Act should be good for employers, good for insurance companies - and bad for solicitors, but they have had a very good run for a long time David Jacob, Alliance Corporate Risk Management.
"They have been promised money by claims management companies.
"It doesn't matter whether or not they have a solid case; they are still encouraged to make a claim because it costs them nothing, and the employer's insurers settle to save themselves an expensive and time-consuming court case. But businesses then have to pay increased insurance premiums because the worst claims you can have on your record are employer liability claims."
Jacob said the current legislation also penalises kind-hearted bosses who pay for medical treatment or offer sick-pay when it is not in a contract.
"If the contract of employment does not entitle the employee to such payments, this is currently seen as an admission of liability.
"The Compensation Act says that an apology or offer of treatment does not amount to an admission of negligence. "This Act should be good for employers, good for insurance companies - and bad for solicitors, but they have had a very good run for a long time."
Jacob added: "If you get your health and safety up to scratch you will have a much greater chance of defending these types of claims."
In the meantime he said: "You can admit an accident was unfortunate but don't admit it was your fault."
