I'm not a lawyer, and there are a lot of little facets to these rules so I could be wrong.

This looks basically like a "legal costs insurance", so the company pays into a fund that then pays the lawyers. I assume the company has no control over the money once it is in the insurance fund. So long as the lawyer doesn't represent the company directly in other dealings then yes they should be able to represent you in an employment dispute.

If the company was just providing direct access to their in-house counsel then no, that'd be a conflict of interest.