5th April 2023

The rising cost of discrimination claims

Sophia Smout

Trainee Solicitor

The latest impact of rising inflation is being felt in the area of employment law, with the Courts and Tribunals Judiciary announcing the annual increase to the Vento bands on 24 March 2023.

The Vento bands, which are named after the case in which they were developed, govern the awards which an employment tribunal can order to compensate injury to feelings in successful discrimination claims by employees.

The lower band applies to the least serious cases, the middle band to cases which are more serious but do not merit an award in the upper band, and the top band to the most serious claims.

Tribunals retain their discretion to award amounts in excess of the upper band in cases where the circumstances are so exceptional as to warrant this.

Whilst the Vento bands are typically adjusted year on year to account for inflation, the increases for 2023 represent the most significant increases since the annual review of the Vento bands was first implemented.

With the top band rising by almost £7,000 since 2022, employers should be aware of the increased level of risk that may be associated with successful discrimination claims, and take care to mitigate these risks by ensuring discrimination, harassment and victimisation policies are up to date, that regular training is undertaken, and that any issues which do arise are dealt with swiftly by way of internal processes and settlement wherever possible.