Disability discrimination at work - employers pay the price

Compensation awards for disability discrimination at the workplace have been gradually increasing since the Disability Discrimination Act came onto the statute books in 1995. However, 2004 saw the biggest increase in awards to date - up by 89% from 2003, according to research issued today (Monday 8 August 2005) by specialist journal EOR (Equal Opportunities Review), published by LexisNexis Butterworths.

Although there were slightly fewer (3.5%) compensation awards for sex, race and disability discrimination in the workplace overall, 2004 proved to be the most costly on record for employers. Awards in 368 cases totalled 6,002,002 (6.2 million including interest). This represented a substantial rise from the previous year, when awards across all three jurisdictions reached 4.3 million.

There was a general upwards trend in the amount tribunals were prepared to award across all three areas of discrimination, with disability discrimination seeing the biggest jump. Overall, across all jurisdictions, the average (16,276) and median (7,065) awards went up by 48% and 25% respectively from 2003, even though there were none of the record-breaking payouts last seen in 2002.

EOR studied the awards, based on Employment Tribunal Service records between 1 January 2004 and 31 December 2004, to identify key trends in discrimination in the UK workplace. This analysis will also form part of a new EOR Guide to Compensation in Discrimination Cases, published in September 2005.

Other key findings include:

Disability discrimination attracted the highest awards, with the average total (28,889), more than double the next highest - race discrimination (13,720). Disability discrimination also topped the awards for injury to feeling; the average and median (6,763 and 5,000 respectively) were higher than for race or sex discrimination.

Tribunals awarded over 100,000 in 9% of disability cases, compared with just 1% of sex cases and no race cases. Awards in disability cases were boosted by the amount given for future loss of earnings, accounting for 33% of the total amount awarded. .

Pregnancy and childcare issues continued to top the sex discrimination award tables. The number of awards for dismissal due to pregnancy went up to 96 (90 in 2003), and accounted for 44% of cases. The level of award also increased. Thirty years after the introduction of the Sex Discrimination Act, many pregnant women still come face to face with entrenched attitudes at work.

The number of race case awards dropped from 61 (2003) to 54 However, there was no decrease in the number of claims being made for race discrimination, and the drop in awards is possibly due to greater efforts to achieve more conciliated settlements.

Awards in the highest band (over 100,000) have increased from 4 (in 2003) to 11.

Almost two-thirds of all awards (63%) were for 5,000 and over.

Two-thirds of all awards for injury to feelings fall into the lowest band for such awards - 500 to 5,000.

EOR Editor, Sue Johnstone said:

Disability discrimination legislation is really beginning to bite and, judging by the awards that Employment Tribunals are making, they are looking sympathetically at future loss of earnings. Tribunals are also awarding more for injury to feeling, recognising the seriousness of disability discrimination and the devastating effect it can have on individuals, on their confidence at work and their future employment.

As yet there have been very few successful cases under the new religious discrimination law. However, with report of a 600% increase in racially motivated crime following the terrorist attacks in London, it is inevitable that there will be a knock-on effect at the workplace.

What is clear is that tribunals are increasingly prepared to order substantial awards to employees who have suffered discrimination - whatever the nature of that discrimination. Although the number of cases where compensation is awarded has fallen, the total amount awarded has increased dramatically. This trend is likely to continue and employers ignore the signals at their peril.