Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

Means-tested compensation awards?

03 September 2010 #Employment

Whenever an employer finds itself on the losing end of a Tribunal claim, that employer could face the daunting prospect of having to pay out a hefty compensation award, dependant on the nature of the claim.

Employers may therefore be concerned to learn that tribunals do not tend to assess the employer`s ability to pay when gauging the appropriate compensation award.  This issue was clearly highlighted in the case of Tao Herbs & Acupuncture Ltd -v- Mrs Y Jin (2010). Here, it was decided that "...the possibility that the employer will be in difficulty in paying an award is not a relevant consideration."

The concern here is that a substantial award, particularly for unlawful discrimination, could undermine the ability of that business to survive.  What this case makes clear however is that tribunals will not assess awards which are linked to the employer`s ability to pay.  The underlying principle will be to compensate the Claimant for the loss they have suffered.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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