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Government reforms (2): Increase in tribunal awards

What do we already know?

1. We updated you in our September 2017 Newsletter Government reforms (2): Increase in discrimination awards on the Guidance published by the Presidents of the Employment Tribunals on the amount of compensation which can be awarded in discrimination claims.

This Guidance confirmed there are three levels of bands for compensation for injury to feeling as a result of discrimination (known as ‘Vento’ bands, after the 2002 case by that name); and that these bands would be reviewed annually.

Awards for injury to feelings are made to employees for the hurt caused when they have been treated in a discriminatory way which is unlawful under the Equality Act 2010.

2. The compensatory award in the vast majority of unfair dismissal cases is subject to a statutory upper limit or “cap”. This cap is adjusted annually by the Government. The relevant date for determining the applicable limit is the effective date of termination (EDT), not the date the Tribunal makes its award.

What’s new?

1. The ‘Vento’ award bands (referred to above) for compensation for injury to feeling as a result of discrimination have been reviewed by the Presidents of the Employment Tribunals.

For claims presented on or after 6 April 2018, the revised Vento bands will be:

2. The limits on compensation awards have increased. The changes are as follows:

The increases are based on a 3.9% increase to the retail prices index (RPI) as at September 2017.

The new rates take effect where the ‘appropriate date’ for the course of action, such as the date of termination in an unfair dismissal claim, falls on or after 6 April 2018. In cases where the date of termination falls before 6 April 2018, the old limits will continue to apply.




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