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Compensation Bands for Successful Discrimination Cases Increase Once Again

The President of Employment Tribunals (England and Wales) and the President of Employment Tribunals (Scotland) (the “Presidents”) have recently published their joint presidential guidance and confirmed that the compensation bands for injury to feelings, also known as the Vento guidelines, will be increased in line with the Retail Price Index.

The bands are used to calculate compensation for injury to feelings in discrimination cases and these bands will apply to claims presented on or after 6 April 2018.

The new bands of compensation are as follows:

  • A lower band of £900-£8,700 for less serious cases of discrimination;
  • A middle band of £8,600-£25,700;
  • An upper band of £25,700 to £42,900 for more serious cases; and
  • The most exceptional cases of discrimination can now exceed £42,900.

It is important to note that this guidance is not legally binding but Tribunals must have regard to it.

The increases are not as stark as those that were introduced on 11 September 2017, however they have nonetheless increased potential liability for employers and other Respondents.

As an aside, the Presidents confirmed that they are fully aware that the Retail Price Index is not the most effective measure of inflation and that they would consider any changing of the index upon which the Vento guidelines are based at a later date.

This bulletin is for general guidance purposes only and should not be used for any other purpose.

Brabners is a Limited Liability Partnership