Employers and employees often purchase a legal expenses Insurance policy to cover them for the costs of litigation arising out of an employment dispute. Employers sometimes engage a HR consultancy service, backed by a legal expenses insurance policy, to assist with employment matters and to deal with disputes.
Legal expenses insurance companies farm out bulk insurance work to their “panel solicitors” in return for substantially reduced hourly rates. Because they charge reduced rates “panel solicitors” usually assign this work to unqualified paralegals or junior lawyers with little experience to keep costs down. An insured could be disadvantaged if the case is assigned to a junior lawyer or paralegal as employment claims are by their nature technically difficult.
Often the insurance company will try to insist that its “panel solicitors” must be used in any litigation. This is simply not correct and is unlawful.
The Legal Expenses Insurance Regulations state that under a legal expenses insurance contract, where recourse is had to a lawyer to defend, represent or serve the interest of the insured in any enquiry or proceedings, the insured shall be free to choose that lawyer.
The Legal Expenses Insurance Regulations also state that the above rights shall be expressly recognised in the insurance policy.
So where an insured has insurance to cover an employment dispute the insured (employer or employee) can legally insist that “panel solicitors” are not foisted on them and that they have the freedom to choose the solicitor and barrister to represent them in the proceedings and in court or Employment Tribunal.
So where an employment dispute is looming, check to see if you have the benefit of legal expanses insurance and remember that you can choose the solicitor and/or barrister that you want to represent you.
