Is there a limit on the compensation that can be awarded in a discrimination claim?
No, there is no limit on the compensation that can be awarded in a discrimination claim. Where a claim is successful, the employment tribunal can order the respondent to pay compensation to the claimant, with the aim of putting them into the position in which they would have been if the unlawful discriminatory conduct had not taken place.
The damages awarded should cover all harm that arises directly from the act or acts of unlawful discrimination. This can include both financial loss and compensation for personal injury (physical and psychiatric) arising from unlawful discrimination, provided in the latter case that the claimant can show that the injury was directly caused by the discrimination suffered.
Damages can also include compensation for injury to feelings, regardless of whether or not the employee has suffered any direct financial loss as a result of the discrimination.
The size of awards for injury to feelings varies depending on the facts of the case and the degree of hurt and distress caused to the claimant by the act of discrimination. There are currently three broad bands of injury to feelings compensation. For claims made on or after 6 April 2021, the top band is between £27,400 and £45,600 and applies only to the most serious cases. The middle band of £9,100 to £27,400 is to be used for serious cases that do not merit an award in the highest band and the lower band of between £900 and £9,100 should be used for less serious cases, such as where the act of discrimination is an isolated occurrence.