Last year we reported on a case in the Court of Appeal that found tax on Injury to Feelings payments is not payable.

Now it has been announced that compensation awards in employment tribunal claims of discrimination, harassment, victimisation and detriment for Injury to Feelings awards have been increased.

The Presidents of the Employment Tribunals in England and Wales and Scotland have issued an addendum to Presidential Guidance (originally published on 5 September 2017) in order to update the “Vento” bands used for calculating these.

For claims presented on or after 6 April 2019, the bands will be:

  • a lower band of £900 to £8,800 (for less serious cases);

  • a middle band of £8,800 to £26,300 (for cases that do not merit an award in the upper band); and

  • an upper band of £26,300 to £44,000 (for the most serious cases).

In the most exceptional cases, awards may exceed £44,000.

What is an Injury to Feelings Claim?

Injury to Feelings claims are often made as part of discrimination claims against an employer. This part of the claim covers any anxiety, distress, or upset which was brought about as a result of the discrimination at work. As detailed above, successful compensation is categorised by the seriousness of the case or how often the discrimination occurred which will be considered on a case by case basis.

What Does the Increase Mean for Employers and Employees?

This is important information for Claimants who are issuing employment claims or at the stage of pre-action disputes or Early ACAS Conciliation.

Respondent Employers also need to be aware of this when defending Employment Tribunal claims or engaged in work-place disputes as the value risk on settlements and compensation is even greater.

If you require employment advice or representation for claiming or defending Employment Tribunal proceedings, please contact Farleys HR & Employment Law team on 0845 287 0939. Alternatively, you can contact the team by email through our online contact form.