Unfair advantage to firms with no, or inadequate, EL cover
Airmic has called on the government to come down more strongly on organisations that fail to buy Employers’ Liability insurance or that buy less than they are required to do.
In its response to the Cabinet Office’s Review of Health and Safety and the Compensation Culture, Airmic describes enforcement of the Employers’ Liability (Compulsory Insurance) Act as “woefully inadequate”. The same can be said, it adds, of health and safety regulations.
“Apart from the obvious moral and legal imperative to protect staff, it is unfair that our members are placed at a competitive disadvantage because they observe the letter of the law,” said technical director Paul Hopkin.
“Firms that save money by taking shortcuts on employee safety are getting away with it because of inadequate enforcement.”
Safety and personal injury changes
Airmic is calling for a relaxation or removal of workplace rules that are over-prescriptive, leading to increased costs without improving safety.
It also calls for a review of the personal injury claims process, which it says has allowed costs to spiral in recent years.
“Recent Government consultations and reviews have failed to improve the situation in relation to case track limits and the claims process for personal injury claims.
“There is considerable scope for claims to be handled in a much more cost-effective manner and Airmic hopes that the government will take this opportunity to review, simplify and thereby significantly reduce claims handling costs,” says the response.
