The phrase ‘compensation culture’ is one with intrinsically negative connotations. It conjures stories of spurious compensation claims made by individuals trying their luck, or attempting to exploit a weak system. In reality, though, the concept of compensation is enshrined in law for very good reason. It helps to protect consumers and employees, and provides a means by which these parties can seek financial redress when things go wrong.

Compensation can be a complex area, so CompensationCulture is here to help you understand it. On this site, you will find information that will help you navigate the choppy legal waters of the compensation system – either as a claimant or as a respondent.

1. What is the legal basis for compensation?

The legal basis for compensation claims can be complex. The laws by which cases are judged and governed vary depending on the nature of the claim, but there are several main concepts you should understand. These include criminal and civil liability, statute and common law, the Human Rights Act, and the Compensation Act. If you are an employer, you should also ensure that you understand (and act within) the key pieces of health and safety legislation, and that you are familiar with your common law responsibilities.

2. I’ve heard about no-win, no-fee. What does it really mean?

No-win, no-fee has become one of the most frequently cited legal buzz phrases of recent times, and has significantly increased the public’s access to the justice system – which can only be a good thing. But there are also significant potential drawbacks, for example, in the rise of spurious claims. If you are considering making a claim, you need to be sure that you understand the no-win, no-fee arrangement. You need to ask yourself whether the deal proposed to you is, in fact, too good to be true, and you should ensure that you understand the costs you will incur in the event that your claim is successful.

3. I’ve been a victim of crime. How can I claim?

If you have been a victim of crime, you may be considering seeking financial recourse within the justice system. Claiming compensation for a crime can be a difficult process, and there are limited circumstances in which you might be able to claim. Although the Criminal Injuries Compensation Scheme is perhaps the best known, it has restrictions, and you should familiarise yourself with all other possible routes. You may, for example, be able to seek compensation from the perpetrator – but again, only in limited circumstances.

It is also worth noting that there is now a Code of Practice for victims of crime, to which groups including the police must adhere. You should familiarise yourself with this in order to ensure that your case is dealt with properly.

4. I’ve suffered a personal injury. How can I claim?

Personal injury claims are largely responsible for the ‘compensation culture’ myth. Stories abound regarding ridiculous claims against public bodies, but the vast majority of personal injury claims are perfectly reasonable. If you have suffered a personal injury, you should familiarise yourself with the circumstances in which you can claim. You should also ensure that you understand the compensation claim process before beginning.

You may be tempted to use a claims management firm to handle the process, but make sure that you are aware of the potential costs involved. Alternatively, you may want to make a claim through an industrial tribunal.

5. What about employment-related claims?

Employment-related claims can often be among the most complex compensation cases. Although a sizeable proportion of cases are settled relatively early, if the case is disputed by the employer, you may have to go to tribunal – and this can be a lengthy and difficult process.

There is a range of circumstances in which you might be able to make an employment-related claim. These include cases of alleged discrimination and unfair dismissal. You should consider taking legal advice if you are unsure whether or not you have a claim.

6. How do I claim against my bank?

The number of compensation claims made against UK High Street banks has spiralled in recent years, following a range of discoveries of malpractice. Reclaiming bank charges became a favourite pastime for Brits, but you should note that the Supreme Court ruled in favour of the banks, meaning that while there are still circumstances in which you might be able to claim, these are now very limited.

You may also, however, wish to read our guides on claiming against a bank or building society on other grounds, claiming against a mortgage broker, claiming against an insurer, or claiming against an investment advisor. If you believe that you are owed money by any of these institutions, for example, because of their negligence, there are ways in which you might be able to get recourse – including the Financial Services Compensation Scheme. You may also wish to familiarise yourself with the Financial Services and Markets Act, which regulates the activities of some financial institutions.

7. How can I improve my chances?

If you are confident that you have a claim, there are several ways that you can help your cause. Depending on the nature of your claim, you may wish to hire a good personal injury lawyer. But you might also consider other routes to redress, including Alternative Dispute Resolution. This can often be an efficient way of resolving claims in a mutually agreeable manner, without having to go to court.

Finally, you may also wish to read our guide outlining what you need to know to win a claim, in order to boost your chances.

8. Someone is claiming against me. What should I do?

In addition to information for individuals who wish to make a claim, CompensationCulture also includes help for those who have received a claim against them. There is a number of different routes of defence that you may wish to investigate. You should familiarise yourself with concepts like volenti non fit injuria, vicarious liability, and contributory negligence. You should also make sure that you understand any time limits that may apply to claims.

Ultimately, though, you should take independent legal advice in order to ensure that you respond appropriately. Above all, you should not just ignore the claim. Do not presume it will go away. Instead, take advice and tackle it head on.

9. How can I avoid being claimed against?

Of course, the best option is not to be claimed against at all, and there are several steps you can take to help ensure that this remains the case. You should familiarise yourself with best practice in your industry and consider ways that you can minimise risk by using health and safety technology or by studying for a health and safety qualification. You should also ensure that you understand your duties under the Health and Safety at Work Act, and that you develop suitable safe person and safe place strategies to help you manage risk.

Compensation claims can be complex. If you win, they can be very rewarding – but if you lose, either as a claimant or a respondent, they can be hugely costly.

The Importance of Independent Legal Advice

It is therefore vitally important that you seek independent legal advice before continuing. A good lawyer will be able to help you make the right decision in your circumstances. Alternatively, free advice is available from your local Citizens Advice Bureau.

Throughout the process, you should remember that compensation is there to help right wrongs, and to provide recourse for those who have suffered things like injury, loss, or discrimination. If you are confident that you have a case, you should not be put off by the complexities of the law. Instead, arm yourself with information and good advice. Good luck!