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1
IN 4 EMPLOYERS HAVE BEEN INVOLVED IN A LITIGATION CASE
BUSINESSES at
risk from growing UK compensation culture. AXA is warning that UK
businesses are increasingly under threat from litigation. Research
conducted by the company reveals that a quarter of employers
surveyed have been involved in a litigation case. Of those
companies, during 2004 over half were involved in one case and a
further 20% were involved in between 2 and 4 cases. But how
successful were they when it came to protecting their interests and
winning their cases? 16% of the companies involved in a case didn’t
win, less than half were successful in winning 1 case, and
only 11% won between 2 and 4 cases.
Doug Barnett, risk control strategy manager at AXA Insurance
comments:- “Despite the risk of litigation, almost a quarter
of SMEs admit that they are not aware of the extent of their
liabilities as an employer. Our research shows that too many
companies are unnecessarily exposing themselves to the threat of
being sued for compensation. The cost of bringing or defending a
legal action can put serious financial pressure on a business,
whether it eventually wins the case or not.”
Businesses can potentially be sued by an employee, a customer, a
supplier or a member of the public. In particular, businesses should
ensure that they understand how employment legislation could impact
on their company. During the past year £6.2million has been awarded
in employment tribunal payouts. This sum, awarded across 368 cases
throughout 2004, shows a 45% increase on the previous year, when the
total payout was £4.3million. Businesses should also remember that
litigation pay-outs set precedents for future settlements.
AXA’s research also asked whether or not SMEs thought that the
growing trend toward a culture of litigation/legal action poses a
risk to their business. Nearly half of UK SMEs (47%) believe that it
does. To reflect this trend AXA’s small business insurance
packages have been enhanced to include legal expenses cover. When
asked about why the UK has become a more litigious society, SMEs
have varying views. Half put it down to us living in a bigger blame
culture these days. 31% cite the increase in ‘no win/no fee’ offers
available and 11% say that people have become more aware of their
rights. A further 6% blamed the fact that the laws are more aligned
to the ‘victim’.
Compensation facts:-
There were fewer awards for sex and race discrimination cases
(3.5%), but a huge leap in cases of "disability
discrimination" - with awards up 89% in 2004
It was also disability discrimination that attracted the highest
awards, with an average payout of £28,889
That was more than double the next highest class - race
discrimination, which brought average payouts of £13,720
Tribunals awarded £100,000 or more in 9% of disability cases,
against just 1% of sex cases, and no race cases
Awards in the highest band, more than £100,000, rose from 4 in 2003
to 11 in 2004
Almost two thirds of all awards - 63% - were for £5,000 or over
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24
HOUR OPENING MEANS WORKERS AT GREATER RISK OF HEARING LOSS WARNS
RNID AND THE TUC
RNID and the
TUC are warning that changes in the Licensing Act, allowing 24 hour
opening, will lead to an increased likelihood of workers in bars,
clubs and pubs being exposed to dangerously loud noise for longer.
They fear extended opening hours will mean the 568,000 people
already working in this growing industry will be subjected to music
so loud they could lose or permanently damage their hearing.
Noise at Work is the theme of this year’s European Week for Safety
and Health at Work (24-30 October 2005). Noise is one of the most
underestimated workplace risks and RNID, the largest charity
representing the 9 million deaf and hard of hearing people in the
UK, and the TUC are urging employers to do more to protect workers’
hearing. Excessive noise in the workplace has caused half a million
people in Great Britain to suffer deafness or other ear conditions
(1). In some bar and club venues, workers’ hearing is being damaged
by music as loud as an aircraft taking off
(110dB(A)).
Brian Lamb, Director of Communications at RNID, says:- “Noise
at work issues are usually associated with industries such as
manufacturing and construction. However, with more licensed premises
opening longer and playing loud, amplified music, staff working in
bars, clubs and pubs might not realise their hearing is being put at
such high risk.
Prolonged exposure to loud noise can cause permanent hearing loss.
Since noise induced hearing loss is often cumulative and not
immediately obvious, its threat is seldom recognised or taken
seriously. However, whilst its effects are irreversible, noise
induced hearing loss is totally preventable through the
implementation of noise reduction strategies and provision of ear
protection for employees.”
Hugh Robertson, Senior Health and Safety Officer at the TUC, says:-
“If bar and club owners don’t protect their staff from ear
splitting noise they will end up in court. In just over two years
the leisure industry will be covered by new legislation, which
reduces further, noise levels in music venues. How are they going to
meet the legal requirements when they cannot even comply with the
current regulations?
The industry must get its act together quickly before it is hit with
a huge wave of compensation claims and enforcement action.”
In a joint report titled ‘Noise Overload’, published
in December 2004, RNID and the TUC highlighted that local
authorities were failing to enforce Noise at Work regulations under
which employers have a legal duty to protect their employees’
hearing. Nearly a year on, there has been little or no improvement
in the enforcement of Noise at Work regulations in bars, clubs and
pubs. RNID and TUC are urging local authorities and HELA (the HSE
and local authority enforcement committee), to carry out noise
assessments and enforce Noise at Work regulations in bars, clubs and
pubs in their areas.
Fatal road traffic collision on Liverpool Avenue, Ainsdale
MERSEYSIDE
Police are appealing for witnesses to a serious road traffic
collision that occured on Thursday, 20 October at 3.55pm in
Liverpool Avenue, Ainsdale.
An elderly female pedestrian was crossing the road at this time when
she was struck by a vehicle travelling south towards Liverpool.
She was conveyed to Southport General District Hospital where she
subsequently died from her injuries.
Witnesses to this incident are requested to contact Merseyside
Police on 0151 777 5730.
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