Employer Liability Insurance

EPLI (Employment Practice Liability Insurance)

The Labour dispute solution

How many companies have vehicle short term insurance?

How many has Employer Liability Insurance?

 The Facts about CCMA cases:

• Over 750 000 cases heard at the CCMA since 1996
•  80% of cases relate to unfair dismissals
• Approximately 60% of cases lost by employers
• In 2004 there were almost 300 000 dismissals in SA
• This resulted in almost 150 000 referrals

• South Africa is the most litigious society worldwide when it comes to labour issues

The Cost To Employer (reported by Andrew Levy - March 2005)

The estimated cost of defending dismissal disputes for last year = R520 000 000

The estimated cost of CCMA awards against employers last year = R1 123 200 000

The estimated management cost of CCMA awards against employers last year R14 000 000 000

About Employment Practice Liability Insurance (as defined):

EPLI is insurance cover for Employers against Legal Costs, Damages and Settlements, following an allegation of unfair dismissal and unfair labour practices brought by a current, past or future employee.

 
Benefits of Employment Practice Liability Insurance:

• The cover acts as a financial tool
• It is an important part of risk management
• It protects your cash flow and reserves
• Cover commences IMMEDIATELY after signing on to the scheme
• Time saver

Cover under the Policy

• Cover for legal fees, awards and settlements
• Unfair dismissals (Actual or Constructive)
• Refusal to hire
• Retaliation (Conditions of Employment)
• Discrimination (Only Damages and legal costs – Comprehensive Cover)
• Sexual Harassment (Only Damages and legal costs – Comprehensive Cover)

 
Exclusions

• Bodily injury, sickness and death
• Dishonest acts of the insured
• Professional exposure
• Pre-existing litigation
• COID, UIF, Pension Fund Legislation
• Strikes
• Adaptation of premises
• Retrenchments
• minimum wages, notice period violations

What's the cost?

As a member of YLPS & (SA) UEO you automatically receive the first R75000 damages cover included in your monthly membership (for employers under 200 employees). Read more about membership here.

Additional insurance options:

Cover: Damages only (membership levy excluded)

Number of Employees: 1 - 200

Limit of Indemnity: R150 000.00

Premium: R125.00 incl. VAT p/m

Cover: Damages only (membership levy excluded)

Number of Employees: 1 - 200

Limit of Indemnity: R250 000.00

Premium: R175.00 incl. VAT p/m

Cover: Damages and Legal Cost (Comprehensive) membership levy excluded

Number of Employees: 1 – 200

Limit of Indemnity: R150 000.00

Premium: R375.00 incl. VAT p/m