If you’ve experienced hearing loss due to working in a noisy industrial environment, you might wonder whether you can still make a claim for compensation, especially if the company you worked for no longer exists. This article explains why it’s still possible to pursue industrial hearing loss claims even when the original employer is no longer in business.
Understanding Industrial Hearing Loss Claims
Industrial hearing loss, often referred to as “noise-induced hearing loss” (NIHL), occurs when prolonged exposure to loud noises in the workplace damages your hearing. Many industries, particularly manufacturing, construction, and mining, have a history of noisy working conditions where proper hearing protection may not have been provided or enforced. As a result, workers from these sectors often suffer from hearing loss, tinnitus, or other related conditions.
What Happens When a Company Ceases to Exist?
When a company ceases to exist, it may be because it went out of business, merged with another company, or was acquired. Regardless of the reason, former employees might think they’ve lost the opportunity to make a claim for industrial hearing loss. However, this is not necessarily the case. Here’s why:
Insurance Policies Covering Employer Liability
Most companies are required by law to have Employers’ Liability Insurance (ELI) to cover compensation claims for work-related injuries or illnesses. This insurance remains active even if the company goes out of business. When you make a claim, it’s typically against the insurer that provided the policy at the time of your employment, not the company itself. Therefore, even if the company no longer exists, the insurance company can still be liable to pay compensation.
Source: Employers’ Liability (Compulsory Insurance) Act 1969
Tracing Former Insurers
In the UK, the Employers’ Liability Tracing Office (ELTO) helps locate the relevant insurance policy if the original employer has ceased trading. ELTO maintains a database of insurance policies, making it easier to identify which insurer covered the company at the time of your employment. Once the insurance provider is identified, you can proceed with your claim.
Source: Employers’ Liability Tracing Office (ELTO)
Successor Companies and Liability
In cases where a company has been acquired or merged, the successor company may inherit the liabilities of the original employer. This means that even if your former employer no longer exists in its original form, the company that acquired or merged with it might still be responsible for settling claims. This is particularly common in industries where mergers and acquisitions are frequent.
Source: Corporate Restructuring and Successor Liability
Legal Precedents and Compensation Funds
Legal precedents also play a role in ensuring that employees are compensated, even when companies no longer exist. For example, in cases involving asbestos-related diseases, compensation funds have been established to provide payouts when the original employer cannot be traced or has gone out of business. While these funds are specific to asbestos, they demonstrate the principle that employees should not be left without recourse simply because their employer no longer exists.
Source: Mesothelioma Act 2014 (For context on legal precedents)