Employment contract defense cost insurance

Employment contract defense cost insurance

Employment conditions can be complicated as the world of work is becoming increasingly complex. In addition, opinions relating to the rights and obligations arising from an employment contract can frequently differ. This is because employers and employees often see things from different perspectives. In labour law, it is always necessary to respond immediately. Taking labour law disputes to the courts can be an expensive business. Even getting advice from a solicitor prior to a dispute does not come cheap.

What is insured?
Employment contract defense cost insurance covers the following specific claims

  • Procedural costs and the costs of legal services associated with the protection of interests, both judicial and non-judicial
  • Claims for any necessary interpreting and translation services within reasonable limits
  • Claims for the necessary initial advice when an investigation is pending, if there is a threat of legal proceedings in connection with a termination.

Important: It is necessary to agree in advance with the insurer on costs with respect to the question, what precisely is meant by “within reasonable limits”.

Who is insured?
This cover involves personal insurance protection for the manager, who is himself the policyholder.

Who provides the insurance?
A sufficient number of insurers underwrite legal protection on employment contracts.