Compensation for discrimination claims is uncapped and therefore can be potentially costly. Additionally, the employee can bring the claim while still in employment. Costs are broadly split into the following categories:
Compensation for loss of earnings – this is uncapped and can potentially cover a number of years depending on when the employee obtains alternative employment.
Injury to feelings – is calculated on the basis of the level of hurt caused to the individual and is based on what is known as Vento bands. The lower, middle and upper bands of Vento set out the ranges of compensation available, depending on the nature of the discrimination suffered. These bands are reviewed and increased periodically and are subject to the current maximum of £44,000, except in the most exceptional circumstances.
Reputational damage is also a risk with these types of claims.
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