DAS: Recession causing employment dispute surge

Legal expenses insurer’s research reveals rise in employment claims

The recession has led to an upswing in the number of employment disputes, DAS research has shown.

According to the figures, published by the legal expenses insurer, the number of employment claims handled by DAS has increased by 80% over the last two years.

The research also revealed a 59% increase in the number of calls to the insurer's legal advice service relating to employment matters.

Of the employment calls, those involving questions about redundancy have increased the most, rising 190% since 2007.

Commenting on the figures, Victoria Scott, head of claims at DAS, said: "We have seen a surge in employment claims over the past two years, especially under our family policies. Claims rose dramatically last year as the recession really took hold and we have seen numbers continue to climb steeply in 2009.

"While the economic situation may have improved by many measures, employment claims numbers will inevitably follow behind the wave of redundancies and other dismissals that this recession brought with it."

She added: "These figures demonstrate how much more aware people are these days, both of their legal rights and the insurance they have in place to protect those rights.

"It's important that employers are equally aware of the risks that poor employment practices can pose to their business and the help that is available to them too.

"The recession will inevitably have some impact on premiums, but legal expenses insurance will still be a relatively inexpensive and extremely cost effective way for businesses and individuals to protect their legal rights."