Welcome to ARAG UK's Blog where we provide news and discussion on the issues facing the legal expenses market.
Wednesday, 7 February 2018
Cycling to success
In 2017, we had the challenge of raising £5,000 for our charity of the year, FOCUS: the charitable fund of the Gloucestershire NHS oncology centre, and we are pleased to say that we achieved this target, and more!
Our enthusiastic staff have cycled to Düsseldorf, run around Bristol in Santa Claus costumes and baked to their hearts content, raising an incredible £12,000 for a range of charities! We are delighted with this achievement and would like to say a huge THANK YOU to all who donated and supported us along the way.
The Bristol to Düsseldorf charity bike ride was a great team
effort, with 37 members of staff taking part and cycling 820 kilometres in 8 1/2
hours.
“It was fantastic to see so many people contributing so much time and
raising so much money. What was really incredible is that besides the generous
online donations, we received £300 from morning commuters just passing by – we
must have looked rather amusing,” says Ian Screen, HR & Facilities Manager.
We were also delighted to receive the Payroll Giving Platinum award which recognises our commitment in fostering a culture of philanthropy and committed giving in the workplace, with over 20% of our staff regularly donating to charity through Payroll Giving.
“Our CSR policy expresses our commitment to being a socially responsible employer and enterprise,” declares Tony Buss, Managing Director. “We’re proud that so many of our employees support the various charity actions.”
Keep updated with our 2018 fundraising activities on our social media and visit our fundraising page here: https://uk.virginmoneygiving.com/ARAGLEI
Claims likely to rise following the abolition of employment tribunal fees
The abolition of Employment Tribunal Fees following UNISON’s successful Supreme Court appeal swept away a significant affordability barrier to individuals bringing claims against their employers or ex-employers.
There has been happy anticipation in the legal press that a
surge of cases would emerge as access to justice was restored. Employment
lawyers have fondly reminisced about a time before fees when individuals could
more easily afford to bring claims. Commentators have speculated about the
impact that the outcome of the UNISON case might have on the volume of future
employment tribunal claims. Will claims
volumes increase to 2013 levels?
Rates have remained steady since ARAG entered the UK market
in 2006 despite legal costs inflation. We should explain that over the last
four years, any cost savings that it may have been assumed would have resulted
from fewer employment tribunal applications have been tempered by:
·
a deflection of costs from tribunal
representation to ACAS early conciliation. Early conciliation has been a
significant factor in encouraging parties to settle disputes and reducing
applications to tribunal. We cover legal costs to represent businesses
throughout early conciliation. More than 92,000 complaints were notified for
early conciliation in 2015/16 and in 48% of cases tribunal applications were
avoided;
·
payment of employment tribunal fees either as
part of an agreed settlement or as a consequence of losing a claim at tribunal;
the Government’s undertaking to repay fees does not extend to employers (or
their insurers) who were liable to pay them;
·
the effect of inflationary influences which have
not been passed on to customers over time.
Anecdotally, tribunals have reported an increase in the number of applications being received. We are hearing of long waits for hearings to be listed as applications back-up. The Employment Tribunals National User Group (England & Wales) noted, at its October 2017 meeting, that Regions were reporting a doubling in new claims since the UNISON decision. http://bit.ly/2D6RACE
Significant court closures, mergers and relocations and a
shortage of employment tribunal judges, have contributed to the pressure felt
by some tribunal centres. Additionally, the judgment in a particular case means
that single claims may be brought where a multiple claim may have previously
been brought; however the Government’s July to September 2017 tribunal
statistics (published in December 2017) showed that single claim Employment Tribunal receipts are up by 64% over the previous
quarter. http://bit.ly/2BoN01T
This represents a sharp and immediate increase in risk for legal expenses insurers.
3 legal developments that probably won’t happen in 2018
There’s any number of articles around at this time of year telling us about legal developments that are coming up in the next 6 to 12 months.

From the annual increases to tax allowances, minimum wage rates, and statutory pay for sickness, maternity and other family-related absence, to much more fundamental changes such as the new gender pay gap reporting requirements to the much heralded General Data Protection Rules (GDPR) there is a lot that UK businesses need to prepare themselves for, by springtime.
The combination of the government’s surprisingly weakened position in the House of Commons since last June’s election and the inevitable priority that must be given to the legislation necessary to deliver an orderly exit from the European Union, has greatly reduced the political capital and parliamentary time available to other legislation.
The free vote that the Prime Minister had promised on repealing the 2004 Hunting Act was an early casualty in 2018, but there are a few other initiatives unlikely to get before parliament, onto the statute books and into force by the end of the year.
Tribunal fees strike back?
As
recently as October, (then) Lord Chancellor David Liddington claimed the
government still wanted to replace the employment tribunal fee regime struck
down by the Supreme Court last summer. However, higher priorities for the
Ministry of Justice and the reduced income that any fair and workable system
could raise, will make quick progress on this unlikely.
LASPOA reform
Formal
assessment of the impact that five years of the Legal Aid, Sentencing and
Punishment of Offenders Act (2012) has had on access to justice, was finally
timetabled by David Liddington last year, and is due to report by the end of
April. Given the time it has taken even to get the assessment underway, the
prospect of any major reform of the legislation being implemented in 2018 seems
remote.
Civil Liability Act
Another
piece of MoJ business that we seem to have been talking about forever, is the
Civil Liability Bill mentioned in last year’s Queen’s Speech. The proposed
increases to small claims court limits of £5,000 for road traffic injury claims and
£2,000 for other injuries appear to be set in stone, but the faltering progress
these reforms have seen since George Osborne first announced them in 2015, makes
a September implementation seem less likely than April 2019.
Unlikely
as these three developments may be to see legislative action this year, there
is more than enough reform taking place in 2018 to keep us all busy. The
uncertainty surrounding the implications of Brexit, especially what it means
for employment law, should become clearer as the year progresses. But one piece
of EU reform that seems certain to survive, GDPR, should be enough to keep us
all busy, at least until the summer.
Labels:
Brexit,
Civil liability bill,
employment tribunal fees,
GDPR,
laspo,
Legal,
legal aid,
MoJ,
personal injury,
tribunal,
UK law
Location:
Bristol, UK
Video guide to ARAG Legal Services website
We’ve created a new video to provide a short overview of our commercial section of the ARAG Legal
Services website, to help business customers understand the ease and benefits
of this valuable addition to the commercial LEI policy.
Our short,animated video provides a step-by-step guide to the website showing the simplicity and use of the website.
Our comprehensive, jargon free law guide, will help policyholders get to grips with business laws and regulations. Our extensive range of easy to customise documents will help them comply with the law and protect their business.
The top services include:
With ARAG Legal Services;your customers;will have access to a host of useful and legally binding documents at their fingertips and provide value to the policy... even if your customers never make a claim.
Our short,animated video provides a step-by-step guide to the website showing the simplicity and use of the website.
Our comprehensive, jargon free law guide, will help policyholders get to grips with business laws and regulations. Our extensive range of easy to customise documents will help them comply with the law and protect their business.
The top services include:
-employment agreements
-employee handbook
-debt collection letters
- Health & Safety compliance review
-job offer letter
-and more…
With ARAG Legal Services;your customers;will have access to a host of useful and legally binding documents at their fingertips and provide value to the policy... even if your customers never make a claim.
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