Compulsory Employers Liability Insurance
Director who failed to insure employees against workplace injuries found not personally liable
In the recent case of Campbell v Peter Gordon Joiners Ltd (in Liquidation) the Court held that a Company Director was not personally liable to an injured employee for failing to obtain Compulsory Employers Liability Insurance.
Mr Campbell was an employee of a company and he suffered an injury at work. Mr Campbell made a claim against the company but by this time the company was insolvent. The company did not have the compulsory insurance which they are required to have under the Employers’ Liability (Compulsory Insurance) Act 1969.
Mr Campbell made a claim for compensation against the company and against the sole Director of the company. The Court held the Director was not personally responsible to pay compensation due to his failure to obtain compulsory insurance. The judges were split in their decision. The case may be appealed.
There are criminal sanctions which can be imposed on Directors for failing to obtain compulsory insurance and therefore Directors should comply with the obligation to obtain compulsory insurance.
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