Income Protection Policies and Dismissals

Income protection policies are a popular employee benefit. However, they throw up a few legal and practical issues that should be addressed to ensure employees are clear on the extent of the benefit and that employers mitigate against the risk of breach of contract and unfair dismissal claims.

Income protection is an insurance benefit that provides income to an individual if they are unable to work for a long period of time due to illness or injury. Subject to conditions, the employee will be entitled to receive a proportion of their usual salary for a period specified under the policy. The period usually begins after they are no longer entitled to their Statutory Sick Pay and ends when the