EPL - Part 2 - Claims

Employment Practices Liability and Claims

Types of claims
The two main avenues of claims are unfair dismissal and discrimination.

Unfair dismissal is defined as incorrect procedures in dismissing an employee.

Claims are usually brought:
in the industrial Relations Commission (State) - capped benefits
in the Australian Industrail Relations Commission (Federal) - capped benefits
under common law - unlimited
The average award for compensation is 6-8 weeks' wages i.e. $10,500 (legal costs are additional).

Termination of employment complaints lodged in the Australian Industrial Relations Commission for the period 1/7/97 to 30/6/98 (Federal claims only): Total 8.092

Claims Examples
Insured / Facts /Covered

Charitable organisation
An employee who was legally blind alleged she was discriminated against as her duties were limited so that she was unable to supervise children
Defence costs and settlement of over $60,000

Manufacturer
The insured hired an experienced financial controller to manage the company's finances. After 6 months it was clear the new employee was not performing as required. The company and employee agreed to part ways but a dispute arose over entitlements to period of notice. The company was subject to demands that settled after contribution from insurer.
Defence costs and settlement of over $20,000

Nursing home
A former employee who performed cleaning duties alleged she was discriminated against on the basis of race. She claimed she was treated differently to her fellow employees and was given menial duties.
Costs of successfully defending of approximately $10,000

Technology
A female manager who was retrenched alleged both wrongful termination and discrimination, claiming the managers who were retained after a restructure were predominantly male and less capable than herself
Defence costs and settlement of over $150,000

Transport/logistics
An employee who was subject to adverse performance reviews resigned. A month later he brought action against the company alleging wrongful termination. He alleged he was constructively terminated and was co-erced into resigning.
Substantial defence costs