The Cost of Losing Employment Tribunal Claims Rises

Employers who lose a discrimination claim could soon find themselves facing greater compensation payments due to an increase in the bands of awards for injury to feelings. Right now, it’s important to protect your business from this and other tribunal limit changes on the way.

Discrimination compensation – what’s happening?

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.

The new increased limits will be:

  • Lower band £990 to £9,900 (previously £900 to £9,100)
  • Middle band £9,900 to £29,600 (previously £9,100 to £27,400)
  • Upper band £29,600 to £49,300 (previously £27,400 to £45,600)
  • Exceptional cases + £49,300 (previously + £45,600)

When will the changes apply?

The new limits on the bands will apply for claims presented after 5th April 2022.

Contact us for help

It’s important for employers to ensure that they treat all employees fairly and appropriately to avoid discrimination arising. If your business needs advice on discrimination or any other employment law matter, please contact us as we are here to help.


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