Flint Bishop

Employment tribunals cost Shropshire employers

Pictured above: Joanne White

 

Employers risk losing thousands of pounds through employment tribunals as pay-outs - particularly in sex discrimination cases - continue to rise, Shropshire solicitors warned today.

Shrewsbury-based solicitors, Linder Myers, said employers needed to be aware that discrimination claims could run into hundreds of thousands of pounds - because there is no maximum amount that tribunals can award.  

Tribunals Service statistics show a 56 per cent rise in claims to employment tribunals between 2008/9 and 2009/10.

Figures show a shift in the types of claims most likely to receive compensation, and the amount of cash awarded has also dramatically changed.

The average compensation award for sex discrimination has soared in recent years.  The average award was £19,499 in 2009/10 - a rise of 77 per cent from the previous year - with a maximum payout of £442,366 compared to £113,106 in 2008/9.

Meanwhile, the average compensation awarded for religious discrimination in the 2008/9 financial year was £10,616, but dropped to just £4,886 in the following year - more than a 50 per cent decrease. 

Joanne White, of Linder Myers in Shrewsbury, said: "Whilst employers always need to be aware of the risk of employment tribunal claims, they need to be more aware of the potential for discrimination claims. 

"This is because unlike unfair dismissal claims, the compensation for discrimination claims is uncapped, meaning tribunals can award whatever figure they like."

 

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Article published by Midlands Business News on 3 February, 2011

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