Losing a Discrimination Claim to Become More Expensive

The bands of awards for injury to feelings in discrimination cases are going up, making them potentially more costly to lose. Here are three things your business needs to know:

1. How does discrimination compensation work?
2. What are the new Vento bands?
3. What can businesses do to help protect themselves from successful discrimination and harassment claims?

1. How does discrimination compensation work?

In outline, if an employee is found to have been discriminated against, an employment tribunal can award compensation for injury to feelings. This is compensation for the hurt and upset the employee has suffered. 

Since it is difficult to quantify hurt and upset, there is guidance in place for how much compensation may be awarded in respect of injury to feelings. This works by categorising the discrimination into bands with an upper and lower limit, the tribunal identifies the band it considers the discrimination falls into and makes an award within the limits for that band. The limits on these bands are changing.

2. What are the new Vento bands?

The new increased limits will be:

• Lower band £1,300 to £12,600 (previously £1,200 to £12,100)
• Middle band £12,600 to £37,700 (previously £12,100 to £36,400) 
• Upper band £37,700 to £62,900 (previously £36,400 to £60,700)
• Exceptional cases + £62,900 (previously +£60,700)

The new limits on the bands will apply for claims presented on or after 6^th April 2026.

3. What can I do to protect my business from successful discrimination and harassment claims?

The starting point is to think about how to prevent such events from occurring. If you have not already done so, think about taking steps such as:

• Clearly communicating that this sort of conduct is not tolerated, and the potential consequences for it
• Putting in place appropriate equal opportunities and anti-harassment policies
• Ensuring your employees and managers have had appropriate discrimination and harassment training and that it is kept up to date. Interested in training for your business? We can help as part of our range of additional services, so please contact your Employment Law Specialist for further information 

Received a complaint about discrimination or harassment in your workplace? Please get in touch; our commercially focused advice can help you navigate the situation.