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The Need

In today's increasingly litigious business environment, employing staff is inherent with legal exposures and employers need cover against allegations of unfair labour practices. According to the Labour Relations Act, employers can be taken to the CCMA, Bargaining Council or Labour Court for various labour practices. Frighteningly, courts may award as much as 24 months’ salary to the aggrieved employee.

Profit companies (public and private) and non-profit companies are therefore all at risk of being sued by current, past and potential employees, and even the most efficient HR departments may fall victim to inconsistent decision making at the dispute resolution forums. Defending a wrongful termination or discrimination claim whether innocent or guilty, or even if the claim is groundless or frivolous can be expensive. The potential exposure for a money damages award threatens a company's financial resources and its reputation can also be called into question. The reality is: any company that has employees needs cover.

The Solution

In response to the escalation in employment-related litigation and the inherent financial risk to businesses, Camargue’s Employment Practices Liability Insurance (EPL) provides comprehensive coverage for employment-related claims. Camargue’s approach to EPL is not only to provide an insurance safety net against labour disputes, but also to provide clients with tools that can both simplify the labour arena, as well as minimise the risks that South African employers face.

Statistically the risk of CCMA action is twice as high as the possibility of a road accident and the EPL premium is substantially less than that of a motor fleet policy.  A business owner needs to be protected from meritless claims brought by disgruntled employees and EPL coverage can serve as a last line of defence.

The Cover

Insurance protection for employers covering:

  • Legal fees
  • Damages
  • Awards
  • Settlements

Following an allegation of;

  • Unfair dismissal
  • Sexual harassment
  • Discrimination
  • Failure to employ

Brought about at;

  • The CCMA
  • Bargaining Council
  • Labour Court
  • Arbitration Proceeding 

Employers who have EPLI cover under Directors and Officers (D&O) policies should be warned that D&O policies generally cover directors and not the company. Virtually all labour cases are brought against the company. EPL cover under a D&O policy may also be more restrictive. 

Risk Management Services

Camargue’s unique M³ approach to insurance is geared towards managing, mitigating and migrating critical business risks – an outcome achieved through the provision of value-added risk benefits to policyholders. Notwithstanding the coverage provided in terms of the policy, the additional risk management benefits further enhance the Camargue product offering and go beyond simple insurance. The overall result is a well-rounded and complete solution to the risks faced in a commercial environment. 

 Risk Management Services included in the Policy cover:

  • Private Arbitration Services    
    Offered through TOKISO Dispute Settlement – this service works towards fast, equitable resolution of disputes between the insured and their clients. As far as possible court proceedings are avoided saving time, money and more importantly reputation.
  • All policyholders become members of an employer’s organisation, facilitating rights to representation at the CCMA
  • Access to labour law advice
  • Policyholders receive subsidised chairing of disciplinary hearings and other industrial relation matters

Important Documents:

Important Notice:

Please save the fillable PDF Proposal Form to your desktop before inserting information. If the proposal form is not saved accordingly, some information may be lost.

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