Over 4 million - the cost of discrimination at work in 2003

Employers were forced to pay compensation totalling almost 4.2 million for unlawful discrimination at work in 2003, according to research issued today (06 September 2004) by specialist journal EOR (Equal Opportunities Review), published by LexisNexis IRS.

Employment tribunals awarded payments in 376 cases of disability, race and sex discrimination in the 12 months to December 2003 - 37 fewer than the previous year. With interest, the overall amount paid out was over 4.3 million. This is less than the total for 2002 (which saw exceptional payouts in race and sex discrimination cases), but shows an 11 % increase on the 2001 figure.

EOR has been monitoring workplace discrimination awards since 1989. Generally, the total award paid out shows an upward trend, although there have been peaks and troughs for race and disability cases. Since 1999, the median award (see notes to editors) in all three jurisdictions (sex, race and disability) has remained above 5,000.

Other key findings:

- More than half of the sex discrimination awards (51%) were linked to pregnancy and childcare issues.

- Applicants who have suffered discrimination can expect a payout of around 5,000-6,000 for the total award and between 2.500 - 4,000 for an injury to feelings award. (Injury to feelings awards recompense individuals for the personal distress caused by unlawful discrimination.)

- While 2003 did not include any record payouts, the average award in each jurisdiction is much higher than the median, reflecting the fact that employers may have to pay large amounts of compensation. Five awards were for over 100,000.

- A third of race and sex discrimination cases in 2003 related to harassment.

- At 15,634, disability discrimination attracted the highest average for a total award, although the median was only 5,310. (see notes to editors)

- In disability cases, future loss of earnings accounted for one fifth of the 1,429,972 total amount awarded, reflecting the tribunalís view that where an applicant has been dismissed on grounds of their disability, it would be difficult for them to gain other employment.

- The highest awards were as follows:


EOR editor, Sue Johnstone said:

ìDiscrimination in the workplace is still costing employers millions of pounds and many more payouts are made in settlements before they reach tribunal. The majority of awards are not the high-profile cases that dominate the headlines; a typical award is significantly lower - somewhere between 5-6,000. However the average award - almost 11,000 - shows that for some employers the cost of discrimination is high.

ìThis is an unnecessary burden on any organisation - private or public sector - and can be easily avoided.

ìLooking ahead, new legislation and a number of high profile large payouts made in 2004 mean that figures are likely to climb again.

ìEmployers have nothing to fear if they take fairness in the workplace seriously; the law does not impose costs upon employers who respect their staff. However, victims of discrimination suffer real distress and hardship and employers who ignore signs of discrimination face potentially huge costs. Not only that, but individual employees who perpetrate the discrimination could be liable too.î

EOR (Equal Opportunities Review) is published by LexisNexis. Available on subscription, EOR is the only source of information, which brings together law and practice on all strands of discrimination. It provides independent and authoritative explanation and analysis of trends and developments in equal opportunities and diversity.
An annual subscription includes 12 issues of the journal and unlimited access to a fully searchable online service. It is currently available for 338 VAT UK / 382 VAT Overseas per annum. Charity and individual rates are available on request. Please contact customer services on 020 8662 2000 or log on to www.lexisnexis.co.uk/EOR for more information.