The following are important exclusions on an EPL policy:
- Retrenchments. Policy only covers unfair dismissals for misconduct and incapacity.
- Wilful acts or the failure to follow the labour advisor’s guidance.
- Salaries/remuneration/taxes etc that would have arisen in the absence of the unfair labour practice.
- Severance pay which would have been payable had the retrenchment been done properly.
- Claims arising out of a takeover or merger
- Claims arising out of industrial action (strikes etc).
- Costs of modifying property to accommodate disabled persons
- Professional indemnity. This policy is unsuitable as PI cover if the Insured is a labour law consultant.
Employment Practices Liability