Association Liability Claim: Tourism Association Unfair Dismissal Claim

What Happened: A tourism association terminated an employee following a disciplinary matter within the organisation. The former employee subsequently lodged an unfair dismissal claim, alleging that their termination was unlawful and seeking compensation for lost wages and other damages. The association faced the prospect of defending their employment decision in a tribunal while potentially owing significant compensation if the claim was successful. Even when associations believe they have followed proper procedures, employment law is complex and claims can be costly to defend regardless of the outcome.

How Association Liability Insurance Managed the Employment Risk: The tourism association’s liability insurance included Employment Practices Liability coverage, which responded to the unfair dismissal claim. The insurer provided legal representation to defend the association’s position and worked toward resolving the matter efficiently. Through skilled negotiation and proper legal guidance, the matter was settled for approximately $8,000 including all legal expenses, allowing the tourism association to resolve the employment dispute without major financial disruption to their operations.

Employment disputes affect associations of all types and sizes. Learn more about our Association Liability Insurance to protect your tourism association or organisation against unfair dismissal claims and employment-related legal costs.