Increase in Compensation Awards for Unlawful Discrimination Cases

Both employers and employees alike should be aware that compensation in unlawful discrimination cases has increased for claims lodged on or after 6^th April 2023.  Unlike compensation for unfair dismissal alone, compensation for unlawful discrimination e.g. on grounds of sex, disability or race can include both financial and non-financial elements and in the majority of successful discrimination claims, compensation will include an award for injury to feelings.

None of the relevant pieces of anti-discrimination legislation provide guidance on how to calculate injury to feelings in monetary terms and it has therefore been left to the Tribunals and Courts to determine.  The Vento Guidelines set out clear guidelines for the amount of compensation to be awarded for injured feelings in discrimination cases and have been updated over the years.

The guidelines set out the following three bands in which awards may be issued:

• The lower band is for “less serious cases, such as where the act of discrimination is an isolated or one-off occurrence”
• The middle band is for “serious cases, which do not merit an award in the highest band”
• The upper band is for “the most serious cases, such as where there has been a lengthy campaign of discriminatory harassment on the ground of sex or race”. Note, only in “the most exceptional case” should an award for injury to feelings exceed the upper limit of this band.

The 2023 rates have now been published and for those claims presented on or after 6^th April 2023, the Vento bands shall be:

Lower band- £1,100 to £11,200 (increased from £990 – £9,900)

Middle band- £11,200 to £33,700 (increased from £9,900 – £29,600)

Upper band- £33,700 to £56,200 (increased from £29,600 – £49,300)

It should be noted that the bands have increased significantly since the guidance was first introduced and a one off incident can now result in a substantial award of compensation.

This article has been produced for general information purposes and further advice should be sought from a professional advisor. Please contact our Employment team at Cleaver Fulton Rankin for further advice or information.