Litigation: Five reasons why your employment tribunal spend might increase next year

A cluster of recent cases and developments is likely to mean rising costs for employers faced with a tribunal claim, warn Phil Allen and Louise Singh ‘Employers are starting to see a renewed flow of the types of claim that had largely fallen away under the fee regime.’ After a few years in the wilderness, …
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Injury To Feelings: Court of Appeal rules that employment tribunals should increase discrimination awards

Phil Allen looks at a recent Court of Appeal decision and why it means there will be increases to discrimination awards in employment tribunals ‘While the largest component of most discrimination awards will remain the (uncapped) lost earnings, the increase in injury to feelings figures will mean that the employer’s potential exposure and the cost …
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QOCS: Discrimination claims in the civil courts

Huw Davies considers whether an injury to feeling is sufficient to trigger QOCS protection ‘That there is a distinction in kind between a personal injury and an injury to feelings is evidenced by the fact that it is clearly recognised that claims for both types of injury can be brought in the same action.’ While …
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Legal News: Employment update

Bradley Houlston rounds up recent case law and developments affecting employers and their advisers ‘Employers should be mindful that refusing access to relevant documents, even in response to a subject access request, could affect the fairness of a dismissal.’ Refusal to respond to a SAR contributed to unfair dismissal In McWilliams v Citibank NA [2016], …
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Termination Payments: A taxing issue for employers

Mark Kaye and Charlie Bowden examine the impact of a recent Upper Tribunal decision on the tax treatment of payments for injury to feelings ‘The decision to separate pecuniary and non-pecuniary loss was the wrong interpretation of s401. The sole factor to consider is whether a payment is made in connection with termination of employment.’ …
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Tax: ITEPA and discrimination payments

Charles Wynn-Evans reviews two important recent authorities on whether compensation for unlawful discrimination can be paid tax free ‘Clarifying the basis for, and the nature of, a payment to be made to an employee to settle their claims can be crucial in determining the proper tax treatment to be applied.’The correct tax treatment of a …
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Aggravated Damages: Compensation for making a bad situation worse

A recent EAT case has highlighted the difficulties involved in awarding damages for aggravating conduct separately from compensation for injury to feelings, explains Sarah Gregory ‘The EAT observed that aggravated damages are an aspect of injury to feelings and reiterated that their purpose is essentially compensatory, not punitive.’In a recent case, the Employment Appeal Tribunal …
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Discrimination Awards: Why the cap doesn’t fit

Christopher Hitchins casts doubt on the government’s ability to limit damages for discrimination given the restraints of EU law ‘The government is considering implementing a system of caps on discrimination awards in the UK. Some of these changes have already been announced and a proposed implementation date has been set.’ Against the backdrop of the …
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