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.