Why employers shouldn’t underestimate employment tribunal awards
When looking at the raw numbers for employment tribunal awards, it’s easy for employers to assume that the risks are minimal. For example, the median unfair dismissal award for 2023/2024 was just £6,746 — hardly a headline figure for most businesses. Even discrimination claims, which tend to attract higher awards, can appear modest at first glance: the median award for disability discrimination was £17,218, and for race discrimination it was £10,253 in the same period.
However, headline figures can be misleading. Recent cases illustrate that, in serious or mishandled situations, compensation can quickly reach hundreds of thousands of pounds — and there is no upper limit for discrimination claims.
Consider these real-life examples:
- In Wood-Hope v Salford City Council and The Governors of the Friars Primary School, a trade union representative unfairly dismissed and discriminated against due to disability received £370,564.
- In CD v Vigilant Security (Scotland) Ltd, a security guard who was constructively dismissed and victimised after raising allegations of race discrimination received £360,705.
So large awards do happen – when employers mishandle grievances, fail to follow fair procedures, or allow a toxic culture to go unchecked.
Tribunal compensation can cover:
- Financial loss: Such as past and future loss of earnings, pension contributions, and benefits.
- Non-financial loss: Injury to feelings, which can attract significant awards depending on the severity.
- Aggravated damages: Where an employer’s conduct is found to be malicious or oppressive.
- Uplifts: Tribunals can increase compensation by up to 25% if an employer fails to follow the Acas Code of Practice for disciplinary and grievance procedures.
- Interest and tax grossing up: Which can further inflate the final amount payable.
How People Business Can Help Reduce Risk
The good news? Most costly tribunal cases are preventable. Here’s how we can help reduce the risks and liabilities that lead to large awards:
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Strengthen Policies and Procedures
We can review your policies and contracts to ensure they’re legally compliant and reflect best practice — from fair disciplinary processes to robust equality, diversity, and inclusion measures.
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Provide Manager Training
Many costly mistakes happen because managers aren’t experienced in how to handle grievances, performance issues, or workplace disputes. Practical training equips managers to apply fair procedures and spot risks early. We offer a range of training solutions, both in person and eLearning, which can be tailored to your needs.
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Support Complex Cases
When a difficult employee relations issue arises — such as allegations of discrimination, whistleblowing or trade union issues — we can help you investigate thoroughly, handle sensitive conversations, and keep processes fair and lawful.
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Offer Mediation and Early Resolution
Early intervention can prevent disputes escalating to tribunal. We can provide professional mediation services or help facilitate managed exits/settlement agreements where appropriate.
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Audit and Monitor
Proactive audits of HR practices can highlight weak spots before they become liabilities. Regular reviews help employers stay compliant as employment law and best practice evolve.
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Provide On-Demand Advice
When managers need urgent advice, having People Business experts on hand can make the difference between resolving an issue internally and facing an expensive tribunal claim later.
A Final Word
While most tribunal awards are relatively modest, the reputational, financial and operational impact of even a single large claim can be significant. A proactive approach — supported by People Business — can help you reduce risks, resolve issues early, and foster a culture where people are treated fairly and disputes are less likely to arise.
If you’d like to know how People Business can help protect your business, contact us today.
