Litigation
Companies and organisations that are seen to be failing to manage stress can incur large compensation payouts.
Successful litigation cases are high profile, and very costly financially. Payouts can be for sums up to £500,000 and attract much publicity. Also, claims by employees for stress-related illness and injury are increasing – in 2006 there were 164,000 claims, up by more than a third on the previous year.
However it is not just financially that companies can suffer. Cases that reach court or an industrial tribunal can damage the employer’s reputation, and often represent a substantial amount of lost senior management time as attention is diverted from critical business issues. Our services could well be viewed as a mitigating factor, as they demonstrate a pro-active approach to stress avoidance. In today’s environment just having an EAP is not necessarily a sufficient defence if an employee brings a stress-related case.
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NSG Services International,