The Employment Appeal Tribunal (in Da’Bell v NSPCC) has ruled that the level of awards made to compensate employees for injury to feelings in discrimination and whistleblowing cases should be increased to take account of inflation. Such awards are compensatory. They are not intended to punish the employer.

In 2002, the Court of Appeal issued guidance (in Vento v Chief Constable of West Yorkshire Police) for use when assessing the compensation payable for injury to feelings in such cases. This identified three bands, depending on the seriousness of the case, and the recommended limits had remained unchanged until the EAT’s decision.

The new limits are as follows:

1. The top band will now be between £18,000 and £30,000. Awards in this range will be made in the most serious cases, such as where there has been a lengthy campaign of discriminatory harassment. Only in exceptional circumstances will a compensation award for injury to feelings exceed £30,000;
2. The middle band is now between £6,000 and £18,000. Awards in this range will be made in serious cases but where the action does not merit an award in the top band; and
3. For less serious cases, such as where the act of discrimination is an isolated or one-off occurrence, awards of between £500 and £6,000 will be appropriate.

The new guidelines come into effect immediately.