Setup
A hospitality management company based in Sussex provides outsourced services to hotels, pubs and hospitality venues. They have 16 employees and a turnover of £1.25M. The claimant was an employee of the hospitality management company’s head office team, and she was in the third trimester of her pregnancy at the time this issue arose. The company suggested that they had concerns around the employee’s fitness for work and offered to move her into a desk based role. Initially no formal claim was made, but it was anticipated that the matter could escalate.
Claim
After the initial notification, it became clear the matter could develop into a claim. The employee argued due to her health, she should be suspended on full pay as the alternative desk based role offered still carried significant risk. Discussions broke down, and she contacted Advisory, Conciliation and Arbitration Service (ACAS), which encouraged further resolution efforts and offered mediation. When the issue remained unresolved, she lodged a formal complaint, alleging her employer pressured her to resign and later disputed her parental entitlements.
The matter paused while she gave birth, though she later returned to work and continued her claim. She declined an initial £10,000 (10 weeks’ salary) settlement offer. CFC’s claims team worked closely with the client’s panel firm to progress negotiations. Before mediation, she accepted an increased offer of £15,000 (15 weeks’ salary) and agreed to resign. Defence costs totalled £45,000.
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Legal disclaimer: These examples are intended for illustrative purposes only and not intended to address the circumstances of any particular insured. Each claim submitted to CFC by an insured is based on the terms and conditions of the coverage provided to that particular insured and the facts and circumstances relating to a particular claim.
