How does labor insurance work?

How does labor insurance work?
Social risk: protect yourself! Get your industrial tribunal insurance quote.

Note: No insurance company takes care of your ongoing disputes with an employee!
CONFIDENTIAL, NO COMMITMENT, NO SPAM

industrial tribunal

Discord within a company is more and more frequent. Companies are likely to receive complaints following a questioning of their social civil liability towards managers, employees or any other victim including suppliers and customers.

One in three businesses is affected by this risk each year and is required to cover defense costs as well as damages following a judgment by the tribunal des Prudhommes.

The employer's prevention obligations are gradually transformed into obligations of result. Complaints and investigations multiply, litigation worsens, the amount of damages awarded to plaintiffs increases and case law is unstable. The stakes are high for employers: social climate, financial balances, reputation, the need for perfect knowledge of labor law within the Legal and Human Resources Departments. In order to deal with this, insurance companies have developed a
Definition

Employees increasingly appeal to the labor courts for reasons of discrimination, moral and sexual harassment, dismissal without real and serious or abusive cause, etc. Therefore, it is essential to protect the company from the financial consequences of these procedures.

Labor and social risk insurance offers the possibility of covering all of the company's financial risks in the event of its Social Responsibility within the company (CSR) being called into question and of industrial tribunal judgments during the period. insurance or the subsequent period.

With this guarantee, the company also benefits from advice and services to manage any labor disputes. It also offers the possibility of covering consultancy fees in the event of damage to the company's reputation.
Mode of application

Labor tribunal insurance intervenes in all cases where the company and its subsidiaries are the subject of a claim related to a social violation:

    working conditions ;
    failure to respect acquired rights, in particular with regard to leave or working time;
    bullying ;
    discriminatory practices;
    dismissal without real and serious cause and / or abusive;
    reprisals, abusive disciplinary measures;
    defamation, violation of privacy;
    dispute with URSSAF etc.

This guarantee comes into effect whenever the company is concerned or must take action relating to a labor dispute. It offers the possibility of protecting the company from the financial consequences of these procedures.

In the event that the company's reputation is damaged or in the event of a crisis, it can also cover the costs of managing the "e-reputation" (online reputation) and the fees of consultants specializing in public relations.

Note: companies often have a "guarantee gap" in this area because professional liability insurance and directors' liability do not cover the social risk for legal persons.
Guarantees

This type of contract guarantees the company the defense of its interests and the assumption of responsibility for the financial consequences of a conflict related to employment (for example the payment of damages) or social relations. Support includes all claims made or against:

    before civil (including labor), administrative, arbitral or criminal courts;
    in the context of any amicable procedure;
    in the context of any investigation carried out by an administrative authority with regulatory and supervisory powers, in particular by the High Authority for the Fight against Discrimination and for Equality.

As a general rule, labor tribunal insurance contracts contain several components:

    an information hotline on social regulations, labor law, decrees and applicable texts;
    assistance in the amicable resolution of the conflict;
    support for costs (lawyers 'and bailiffs' fees, procedural costs, payment of damages).

The various guarantees offered in a standard insurance contract include:

    Settlement of pecuniary consequences
    Defense costs
    Reputation damage
    Private investigation
    Replacement of an ex officio manager
    Psychological support
    Mediation

What interest for the company?

The choice to subscribe to labor and social risks insurance is an important decision for the business manager in view of the figures on litigation