Compensation for discrimination claims

A guide to help you work out what compensation you could be awarded for a successful discrimination claim.

This guide will help If you have received a settlement agreement and are considering accepting the compensation offered or whether should go back and ask for more.

Compensation for discrimination claims is determined by what the Employment Tribunal is permitted to order your employer to pay. This is currently limited to the following:

1. Financial loss
2. Injury to feelings award
3. Personal Injury
4. Aggravated Damages
5. Exemplary or “punitive” damages

(1) Financial loss

This can cover a wide range of losses which you have been caused to suffer as a result of discrimination and can include:

• Unpaid wages whilst you were off sick because of the discrimination;
• Loss of earnings if you have been dismissed or been forced to resign until you found a new job;
• Pension contributions;
• Work related benefits such as the sue of a company car, mobile, private health or life insurance.

(2) Injury to feelings award

this is the main type of compensation you will be awarded by the Employment Tribunal and is designed to compensate you for the anger, distress and upset you suffered because of the discrimination. There is not a separate award for each alleged act of discrimination, but if there are several caused by different protected characterises then the tribunal will make a separate award for each. For example if you suffered age discrimination but also race discrimination, you would secure two awards unless they overlap and arise from the same set of facts.

The Employment Tribunal will use the Vento Bands to guide them when making an award.

(3) Personal Injury

You can also seek to recover an award from the employment tribunal for any personal injury you may have suffered as a result of the discrimination. This will include any physical or psychological injury.

The nature of the personal injury will be over and above the hurt and distress caused by the discrimination which is compensated through an injury to feelings award. A common claim will be for stress, anxiety and depression caused by the discriminatory behaviour of a bad employer. Medical evidence to support a link between the discrimination and the injury will be necessary to secure a personal injury award.

(4) Aggravated Damages

Aggravated damages are awarded in the most serious cases where the behaviour of an employer has aggravated an employee’s injury to feelings. The Employment Tribunal will only make an award where the behaviour of the employer has been aggressive, malicious or oppressive.

It is important to understand, both injury to feelings awards and aggravated damages are designed to compensate an Employee for injury and not to punish an employer.

(5) Exemplary or “punitive” damages

This award is rare in the Employment Tribunal and can be awarded to punish the Employer for their behaviour and deter them from acting in a similar manner in the future, rather than compensate the Employee.

This award is available in limited cases where the compensation sums themselves awarded to the employee are insufficient punishment and the employer’s conduct is either:

1. Oppressive, arbitrary or unconstitutional;
2. Calculated to make a profit which could exceed the compensation otherwise payable to the employee.

Claims which will not be considered by the Employment Tribunal

The Employment Tribunal will not entertain claims for the following:

• Loss of reputation
• Stress
• Inconvenience
• Apologies
• Damages or each incident of discrimination

This is where a settlement agreement may be a better path if you are looking to secure an apology or negotiate terms which protect your reputation and industry status going forward.