• Location: Manchester

info@employmenttribunalsupport.co.uk

Drop us a line

0333 2422375

Make a call

Address

402 First Floor, Palatine Road,
Manchester, England, M22 4FZ

Author Archives: admin@settlement

HomeEmployment Tribunal Support  /  Articles by: admin@settlement
Categories Blogs

What Should an Employer Do When Facing an Employment Tribunal Claim?

Author admin@settlement Categories Blogs Posted on

This page references tribunal time limits and procedure that are changing under the Employment Rights Act 2025, including a confirmed extension to claimant time limits from 1 October 2026 — always check GOV.UK for the current position.

Introduction

Receiving notice of an Employment Tribunal claim is unsettling for any business, whether you’re a small employer handling it directly or an HR team managing it alongside everything else. The good news is that the process is structured and predictable once you understand the key steps — and getting the early decisions right, particularly around your response deadline, matters considerably more than most employers realise until it’s too late.

This guide walks through what to do from the moment a claim arrives, written specifically for employers rather than claimants.

Table of Contents

  1. What Happens When You Receive an ET1
  2. Responding: The ET3 and the 28-Day Deadline
  3. What Happens If You Ignore the Claim
  4. Should You Try to Settle Early?
  5. Preparing Your Defence
  6. Understanding Your Costs Risk as an Employer
  7. Do You Need Legal Representation?
  8. Contact Us for Employment Tribunal Support
  9. Final Thoughts
  10. Frequently Asked Questions

What Happens When You Receive an ET1

A tribunal claim starts life as a form called the ET1, submitted by the claimant (usually after they’ve been through ACAS Early Conciliation). Once the tribunal accepts the claim, it’s sent to you as the respondent, along with details of the case and the deadline for your response.

It’s worth reading the ET1 carefully and completely before doing anything else — the specific claims being brought, the dates referenced, and the remedy being sought all shape how you should respond, and rushing this first read is a common source of avoidable mistakes later in the process.

Responding: The ET3 and the 28-Day Deadline

Your formal response is made using form ET3, and you generally have 28 days from the date the claim was sent to you to submit it. This deadline is applied strictly, and it’s genuinely one of the most important dates in the entire process — far more employers underestimate this than overestimate it.

Your ET3 should set out clearly whether you dispute the claim, admit any part of it, and the factual and legal basis for your position. As with the claimant’s ET1, this document shapes the scope of what follows, so it’s worth treating it with real care rather than as an administrative formality to get out of the way quickly.

What Happens If You Ignore the Claim

Failing to respond within the deadline carries genuine consequences — a tribunal can enter a default judgment against you without a full hearing, potentially deciding liability, and sometimes remedy, in your absence. Reversing a default judgment afterwards is possible in limited circumstances but is far harder, slower, and less certain than simply meeting the original deadline. If you’re struggling to respond in time for a genuine reason, it’s far better to seek an extension or urgent advice than to let the deadline pass and hope to sort it out afterwards.

Should You Try to Settle Early?

Many tribunal disputes never reach a final hearing, and it’s worth genuinely considering early on whether settlement makes sense for your business, rather than treating it as a late-stage fallback. The calculation isn’t just about the strength of the underlying claim — it’s about the cost of defending it through to a hearing, the management time it will absorb, and any reputational considerations, weighed against what a reasonable settlement figure would cost.

This doesn’t mean settling every claim regardless of merit — a weak claim may be worth defending robustly. But dismissing settlement on principle, without weighing what a claim could realistically cost you if it succeeds against the practical cost of litigation, is a common and often expensive mistake.

Preparing Your Defence

If you’re proceeding to defend the claim, preparation follows a broadly similar structure to what a claimant goes through: gathering relevant documents, preparing witness statements from the people actually involved in the events in question, and complying with whatever directions the tribunal issues on disclosure and evidence exchange — a process that, like the tribunal timeline generally, often runs longer than businesses expect. Being organised and responsive to tribunal deadlines throughout this stage reflects well on your credibility generally, and genuinely reduces the risk of unnecessary procedural complications later.

Understanding Your Costs Risk as an Employer

It’s worth knowing upfront that winning a tribunal claim doesn’t automatically mean you will recover your legal costs. Employment Tribunals generally expect each side to bear its own costs regardless of outcome, and a costs order against the claimant — even where you successfully defend the claim — is the exception rather than the norm, typically reserved for genuinely unreasonable conduct on their part. This is quite different from civil litigation, where costs more often follow the outcome, and it’s an important expectation to set internally before deciding how to approach a claim.

Do You Need Legal Representation?

There’s no legal requirement for an employer to be represented at tribunal, and some straightforward claims are managed internally by an HR team. Whether that’s the right approach depends heavily on the complexity of the claim, what’s potentially at stake, and whether the claimant is represented — facing a represented claimant without your own support can be a genuinely difficult position to manage well without relevant experience.

Contact Us for Employment Tribunal Support

Every tribunal claim starts with the same tight window to respond correctly, and the decisions made in those first 28 days — how you respond, whether you explore settlement, and how you prepare — tend to shape everything that follows.

Contact for Consultation

Final Thoughts

Facing an Employment Tribunal claim as an employer is manageable with the right approach — meeting your response deadline, honestly weighing settlement against the cost of defending, and preparing thoroughly if you proceed. The businesses that struggle most tend to be the ones that underestimate the early deadlines, not the ones that ultimately lose on the merits.

Frequently Asked Questions

What should I do first if I receive an Employment Tribunal claim?

Read the ET1 carefully to understand exactly what’s being claimed, then start preparing your response — you generally have 28 days to submit form ET3, and this deadline is strictly applied.

A tribunal can enter a default judgment against you without a full hearing, which can be difficult and uncertain to reverse afterwards. If you’re at risk of missing the deadline, seek an extension or urgent advice rather than letting it pass.

Not automatically. Employment Tribunals generally expect each side to bear its own costs regardless of outcome, and a costs order against the claimant is the exception, not the norm.

It’s worth genuinely considering, weighing the cost and management time of defending through to a hearing against a reasonable settlement figure — rather than settling automatically or refusing to consider it on principle.

Not as a legal requirement, though it depends on the complexity of the claim and whether the claimant is represented. A straightforward claim may be manageable internally; a more complex one often benefits from experienced support.

Yes. Claims can settle at any stage, including after a response has been filed, right up to and even during a final hearing.

Categories Blogs

Can I Appeal an Employment Tribunal Decision?

Author admin@settlement Categories Blogs Posted on

This page references a March 2026 amendment to EAT procedure and a further set of reforms still under consultation — the appeals process is genuinely in flux at the moment, so always check the EAT’s current practice direction before relying on a specific step.

Introduction

Yes, you can appeal an Employment Tribunal decision — but the process works quite differently from what people generally expect, and getting the first step wrong can cost you the right to challenge the decision at all. This guide walks through the actual mechanics: the choice between reconsideration and a full appeal, what counts as a valid ground, and how the process itself unfolds once you’ve started it — worth reading alongside what actually happens if your case doesn’t succeed in the first place, particularly around the costs risk many people worry about unnecessarily.

Table of Contents

  1. Appeal or Reconsideration? The Critical First Choice
  2. What Actually Counts as a Valid Ground of Appeal
  3. Who Can Appeal — It’s Not Just the Losing Side
  4. The Appeal Process: From Notice of Appeal to the Sift
  5. The 42-Day Deadline
  6. What Happens If Your Appeal Succeeds?
  7. Contact Us for Employment Tribunal Support
  8. Final Thoughts
  9. Frequently Asked Questions

Appeal or Reconsideration? The Critical First Choice

Before appealing, it’s worth knowing that a completely separate route exists: asking the same Employment Tribunal to reconsider its own judgment, under Rule 70 of the Employment Tribunal Rules of Procedure. Choosing the wrong one of these two routes — or using reconsideration when what you actually needed was an appeal — can genuinely cost you time you don’t have, given how strict the appeal deadline is.

Reconsideration exists to correct genuine administrative errors or oversights in a judgment — for example, where the tribunal made a clear factual or clerical mistake, reached a decision without a party present through no fault of their own, or where new evidence has emerged that couldn’t reasonably have been produced at the time. It is not designed to correct errors of law, and it’s not a second attempt to argue points the tribunal has already properly considered and rejected. In most cases, if you believe the tribunal got the law wrong rather than made a factual oversight, reconsideration isn’t the right tool — an appeal is.

What Actually Counts as a Valid Ground of Appeal

An appeal goes to the Employment Appeal Tribunal, and its jurisdiction is limited specifically to correcting errors of law — it doesn’t rehear your case or reconsider the evidence itself. This is worth being genuinely clear-eyed about: disagreeing with the tribunal’s factual findings, or feeling the outcome was simply wrong, isn’t a valid ground on its own, however strongly you feel it.

Valid grounds generally include a misapplication or misunderstanding of the relevant legal test, procedural unfairness during the hearing, a decision that was genuinely perverse given the evidence — meaning no reasonable tribunal could have reached it — a failure to give adequate reasons for the decision, or bias, including apparent bias. Grounds of appeal need to identify the specific error of law clearly and precisely; EAT judges have consistently noted that focused, well-defined grounds tend to be far more persuasive than a long list of loosely argued points, and raising too many grounds can actually suggest that none of them is particularly strong.

Who Can Appeal — It’s Not Just the Losing Side

Either party to a tribunal claim can appeal, not just the side that lost. A claimant who lost can appeal on the usual basis that the tribunal made an error of law. Less obviously, a respondent who actually won at tribunal can sometimes still have grounds to appeal, if the tribunal’s reasoning or specific findings could have consequences for other proceedings, or carry reputational implications the respondent wants formally challenged, even where the ultimate outcome favoured them.

The Appeal Process: From Notice of Appeal to the Sift

Once you’ve decided an appeal is genuinely the right route, the process itself follows a fairly structured path. You start by completing a Notice of Appeal and drafting Grounds of Appeal, setting out precisely which error of law you say the tribunal made—this document matters considerably, since it defines the entire scope of what the EAT will consider.

From there, your appeal goes through what’s known as the sift: an EAT judge reviews your Notice of Appeal and the tribunal’s judgment on the papers alone, without a hearing, to decide whether any of your grounds are reasonably arguable. If the judge considers a ground has no reasonable prospect, that ground won’t proceed any further as things stand. If your appeal is rejected at the sift stage, that isn’t necessarily the end of it—you generally have a limited window, currently 14 days, to request an oral hearing, known as a Rule 3(10) hearing, where you can argue in person why permission to appeal should be granted after all.

It’s worth knowing that a March 2026 amendment to the Employment Tribunal Procedure Rules has also changed one procedural detail in this area—reconsideration refusals made on the basis that a substantially identical application has already been made and refused no longer need to be formally published, which is a technical change but reflects how actively this area of procedure continues to be refined.

The 42-Day Deadline

The standard time limit for lodging an appeal is 42 days, but when that clock starts depends entirely on how the tribunal delivered its decision.

Under the March 2026 procedural rules, tribunals can now provide “summary reasons” orally at the hearing. If this happens, you must formally request written full reasons within 14 days of the date the written record of the judgment was sent to you. If you make this request in time, your 42-day window to lodge an appeal begins on the date the written full reasons are sent to you. However, if you fail to request written full reasons within that 14-day window, the 42-day appeal deadline begins on the date the written record of the judgment was sent—and since an EAT appeal must be accompanied by the written full reasons, missing the initial 14-day request window can leave you unable to appeal at all.

This 42-day deadline is applied strictly, and your completed Notice of Appeal must be received by the EAT no later than 4:00 PM on the final day. There is very limited room for exceptions, which is exactly why identifying whether you need a reconsideration (which must be applied for within 14 days) or an appeal matters as much as it does. Given how much can turn on this timing, it is genuinely worth seeking advice as soon as you receive a decision, rather than waiting until closer to the deadline—especially since tribunal cases already take considerable time to reach a decision in the first place, before an appeal extends things any further.

What Happens If Your Appeal Succeeds?

A successful appeal doesn’t necessarily mean the outcome you wanted is immediately handed to you. In most cases, the EAT will remit the case — sending it back to the original tribunal, or occasionally a differently constituted one, to be reconsidered or reheard in light of the error identified. In more limited circumstances, where the correct outcome is genuinely clear on the facts already established, the EAT can substitute its own decision instead of sending the matter back. Which of these happens depends heavily on the nature of the error found and how much further fact-finding, if any, is genuinely needed.

Contact Us for Employment Tribunal Support

Deciding whether reconsideration or a full appeal is the right route — and then drafting grounds that actually identify a genuine error of law rather than simply restating disagreement with the outcome — is one of the more technical corners of tribunal procedure. Getting the early decision right matters considerably, given how unforgiving the deadlines involved are.

Contact for Consultation

Final Thoughts

Appealing an Employment Tribunal decision isn’t simply a case of asking someone else to look at your case again — it’s a narrow, technical process focused specifically on errors of law, running alongside a completely separate reconsideration route for genuine administrative mistakes. Understanding which route actually fits your situation, and moving quickly given the strict deadline involved, puts you in a considerably stronger position than trying to work it out after time has already started running.

Frequently Asked Questions

Can I appeal just because I disagree with the tribunal's decision?

No. An appeal to the Employment Appeal Tribunal is limited to correcting errors of law — misapplying the legal test, procedural unfairness, a perverse decision, inadequate reasons, or bias — not simply disagreeing with the tribunal’s assessment of the facts or evidence.

Reconsideration asks the same tribunal to correct a genuine administrative error or oversight in its own judgment. An appeal goes to a different body, the EAT, and is limited specifically to correcting errors of law. Using the wrong route can waste valuable time given the appeal deadline.

It’s the initial review where an EAT judge considers your Notice of Appeal on the papers, without a hearing, to decide whether any of your grounds are reasonably arguable before the appeal is allowed to proceed further.

You generally have a limited window, currently 14 days, to request an oral hearing where you can argue in person why permission to appeal should be granted.

In some circumstances, yes — a winning respondent can appeal if the tribunal’s reasoning could affect other proceedings or carry reputational consequences, even where the ultimate outcome favoured them.

Most successful appeals result in the case being sent back to a tribunal for reconsideration or a fresh hearing, rather than the EAT immediately awarding the outcome you wanted. In more limited cases, the EAT can substitute its own decision instead.

Categories Blogs

What Happens If I Lose an Employment Tribunal Claim?

Author admin@settlement Categories Blogs Posted on

This page references appeal time limits and tribunal procedure rules that changed on 2 March 2026, and figures that are reviewed periodically — always check GOV.UK for the current position before relying on a specific figure or deadline.

Introduction

Losing a tribunal claim is understandably one of the biggest worries people have before bringing one — not just the disappointment of an unsuccessful outcome, but genuine uncertainty about what it might cost. The good news is that losing an Employment Tribunal claim is far less financially risky than losing a case in the civil courts. This guide explains what actually happens, when costs can be ordered against you, and what your options are afterwards.

If you’re still weighing up whether to bring a claim at all given this risk, our guide on Settlement Agreement vs Employment Tribunal: Which Is Better? may be useful background before you decide.

Table of Contents

  1. Losing Doesn’t Automatically Mean Paying the Other Side’s Costs
  2. Deposit Orders: A Warning Sign Worth Understanding Early
  3. Can You Appeal a Tribunal Decision You’ve Lost?
  4. Recent Changes to How Tribunal Reasons and Appeals Work
  5. Can You Bring the Same Claim Again?
  6. What Losing Doesn’t Mean
  7. Contact Us for Employment Tribunal Support
  8. Final Thoughts
  9. Frequently Asked Questions

Losing Doesn’t Automatically Mean Paying the Other Side’s Costs

Unlike the civil courts, where costs generally “follow the event” — meaning the losing side usually pays the winning side’s legal costs — Employment Tribunals work on a different default position. Each side is normally expected to bear its own costs, win or lose. This is one of the most important and most reassuring things to understand before bringing a claim: simply losing is not, by itself, a reason for a tribunal to order you to pay your employer’s legal bill.

When Can a Costs Order Actually Be Made?

Costs orders exist, but they’re the exception rather than the norm, and tribunals apply them cautiously. A costs order typically requires more than an unsuccessful claim — it usually needs the tribunal to find that a party acted vexatiously, abusively, disruptively, or otherwise unreasonably in how the claim was brought or conducted, or that the claim (or the employer’s response) had no reasonable prospect of success from the outset. Tribunals are also generally more cautious about awarding costs against people representing themselves than against parties with legal representation, recognising that litigants in person aren’t necessarily expected to assess the legal merits of their case with the same precision a lawyer would.

Preparation Time Orders and Wasted Costs Orders

Alongside standard costs orders, tribunals have two related but distinct powers worth knowing about. A preparation time order can compensate a party — most relevantly, one who represented themselves — for time spent preparing their case, calculated differently from a standard costs order. A wasted costs order, by contrast, is made against a legal representative personally, rather than their client, where the representative’s own improper, unreasonable, or negligent conduct caused unnecessary costs.

Deposit Orders: A Warning Sign Worth Understanding Early

Separately from costs made at the end of a case, a tribunal can make a deposit order earlier in proceedings, at a preliminary hearing, where it considers a specific claim, response, or argument has little reasonable prospect of success. This requires the paying party to put down a deposit, currently up to £1,000 per allegation, as a condition of being allowed to continue pursuing that point. If the claim later fails on the specific ground the deposit related to, the deposit is generally forfeited to the other side, and a costs order becomes considerably more likely to follow.

A deposit order isn’t the same as losing your case outright, but it’s a meaningful signal worth taking seriously — it reflects the tribunal’s early view that a specific part of your case is weak, and it’s worth discussing with a solicitor whether it changes how you approach that element of your claim going forward.

Can You Appeal a Tribunal Decision You’ve Lost?

Yes, but appeals from an Employment Tribunal work quite differently from simply asking a different judge to look at your case again.

What Counts as a Valid Ground for Appeal

An appeal goes to the Employment Appeal Tribunal (EAT), and crucially, it can only be brought on a point of law — not because you disagree with the tribunal’s findings of fact or the weight it gave to particular evidence. Valid grounds typically include the tribunal making an error of law, reaching a decision that was genuinely perverse on the evidence, or a procedural irregularity that affected the fairness of the hearing. Disagreeing with how a judge assessed a witness’s credibility, on its own, is very unlikely to succeed as a ground of appeal.

The Time Limit for Appealing

The standard time limit for lodging an appeal is 42 days from the date the tribunal’s written reasons were sent to you — a strictly applied deadline with very limited room for exceptions. If your judgment didn’t include written reasons, there’s a process for requesting them, and the 42-day clock generally runs from when those reasons are actually provided rather than from the original judgment date.

Recent Changes to How Tribunal Reasons and Appeals Work

It’s worth being aware that tribunal procedure in this area changed relatively recently. From 2 March 2026, tribunals gained the ability to give shorter, summary reasons for a judgment orally at the hearing itself, rather than always producing full written reasons. If you want to appeal, you’ll generally need full written reasons to accompany your appeal, and if only summary reasons were given, there’s a limited window — currently 14 days from the date the written record of the decision is sent to the parties — to request full written reasons before the appeal clock starts running properly. Given how recently this changed and how procedurally important it is, it’s worth confirming the current position directly if you’re considering an appeal, rather than assuming the process works exactly as it did previously.

Can You Bring the Same Claim Again?

Generally, no. Once a tribunal has reached a final decision on your claim, you can’t simply bring the same claim again in the hope of a different outcome — this is a long-standing legal principle preventing the same dispute from being relitigated repeatedly. An appeal to the EAT, on a genuine point of law, is the route for challenging a decision you believe was wrong, rather than starting over. If you’re not sure whether your situation might actually support a different or additional claim you hadn’t previously brought, our guide on How to Make an Unfair Dismissal Claim covers how a new claim is properly framed and submitted.

What Losing Doesn’t Mean

It’s worth being clear about what an unsuccessful outcome doesn’t automatically involve: it doesn’t mean you’ll owe your employer’s legal costs, it doesn’t mean you’ve done something wrong by bringing the claim, and it doesn’t prevent you from seeking advice on whether an appeal on a genuine point of law might be available. Tribunal claims turn on evidence, legal tests, and sometimes fairly fine judgment calls — an unsuccessful outcome reflects the tribunal’s assessment of your specific case, not a judgment on whether you were right to bring it. Our guide on How Much Compensation Can I Get From an Employment Tribunal? covers the flip side of this — what’s actually available if a claim succeeds, for context on what was at stake.

Contact Us for Employment Tribunal Support

Understanding the real risk profile of bringing a claim — rather than assuming the worst-case financial outcome — is often a genuinely useful part of deciding whether to proceed in the first place. If you’re weighing this up, our guide on Do I Need a Solicitor for an Employment Tribunal? covers the support options available, including a case review that can help you assess the strength of your claim before you commit to it.

Contact for Consultation

Final Thoughts

Losing an Employment Tribunal claim is not the financially catastrophic outcome many people assume it will be — the default position protects both sides from paying the other’s costs, and costs orders remain the exception, generally reserved for genuinely unreasonable conduct rather than simply an unsuccessful claim. Understanding this properly, alongside your realistic options if you do lose, including a potential appeal on a genuine point of law, is a useful part of deciding whether bringing a claim is the right choice for you.

Frequently Asked Questions

Will I have to pay my employer's legal costs if I lose?

Not automatically. Employment Tribunals generally expect each side to bear its own costs regardless of outcome, and a costs order against you typically requires unreasonable conduct or a claim with no reasonable prospect of success, not simply an unsuccessful outcome.

It’s an order requiring a party to pay a sum, currently up to £1,000 per allegation, as a condition of continuing with a specific claim or argument the tribunal considers has little reasonable prospect of success. Losing on that specific point afterwards makes a costs order more likely.

Yes, but only to the Employment Appeal Tribunal and only on a point of law — such as an error of law, a perverse decision, or a procedural irregularity — not simply because you disagree with the tribunal’s findings of fact.

The standard time limit is 42 days from the date the tribunal’s written reasons were sent to you, though this can depend on whether full written reasons were requested following a recent change allowing tribunals to give oral summary reasons.

Generally no. A final tribunal decision typically can’t be relitigated by bringing the same claim again — an appeal on a genuine point of law is the route for challenging a decision you believe was wrong.

Not necessarily. Tribunal outcomes depend on evidence and legal tests applied to your specific circumstances, and an unsuccessful claim doesn’t automatically mean it was unreasonable to bring it in the first place.

Categories Blogs

How Much Compensation Can I Get From an Employment Tribunal?

Author admin@settlement Categories Blogs Posted on

This page references several compensation limits that are reviewed annually, and one — the unfair dismissal compensatory award cap — that is due to be removed entirely from 1 January 2027 under the Employment Rights Act 2025. Figures are correct as of the publication date — always check GOV.UK for the current position.

Introduction

What an Employment Tribunal can actually award depends heavily on the type of claim involved — unfair dismissal, discrimination, unpaid wages, and breach of contract all follow different rules, with different caps, different components, and in some cases no cap at all. Understanding the shape of what’s available is useful whether you’re deciding whether a claim is worth pursuing, or simply trying to understand what a tribunal judgment or settlement offer is actually built from.

This guide gives a broad overview across claim types. If your claim is specifically about unfair dismissal and you want a detailed breakdown of exactly how that figure is calculated, our guide on Unfair Dismissal Compensation: How Much Can You Claim? goes into that in depth — this piece covers where that fits alongside everything else a tribunal can award.

Table of Contents

  1. Compensation for Unfair Dismissal
  2. Compensation for Discrimination and Whistleblowing: Injury to Feelings
  3. Other Types of Award a Tribunal Can Make
  4. Uplifts and Reductions: How the ACAS Code Affects Compensation
  5. Is There a Cap on What You Can Recover?
  6. Contact Us for Employment Tribunal Support
  7. Final Thoughts
  8. Frequently Asked Questions

Compensation for Unfair Dismissal

Unfair dismissal compensation is normally made up of two parts. The basic award is calculated using a formula based on your age, length of service, and weekly pay, capped at 20 years’ service and at a maximum weekly pay figure set annually — currently £751, giving a maximum basic award of £22,530. A separate, guaranteed minimum floor applies to the basic award in certain automatically unfair dismissal categories (such as dismissal connected to health and safety, trade union activities, or acting as a pension scheme trustee), which currently ensures a minimum award of £9,157 regardless of your length of service.

The compensatory award, which covers your actual financial losses such as lost earnings and lost benefits, is capped at the lower of a set statutory maximum — currently £123,543 — or 52 weeks’ gross pay. This cap is due to be removed entirely from 1 January 2027 under the Employment Rights Act 2025, meaning tribunals will eventually be able to award the full value of a claimant’s loss without an upper limit. It’s also worth knowing that this cap already doesn’t apply at all to certain automatically unfair dismissal categories — whistleblowing and health and safety dismissals in particular can attract uncapped compensatory awards even under the current rules. Our guide on Automatic Unfair Dismissal Explained covers which categories this applies to.

Compensation for Discrimination and Whistleblowing: Injury to Feelings

Claims under the Equality Act 2010 — covering discrimination on grounds such as sex, race, disability, age, religion, and other protected characteristics — work differently again. Compensation for financial loss in a discrimination claim is uncapped entirely, reflecting the view that discrimination shouldn’t be subject to the same limits as an ordinary dismissal. On top of any financial loss, tribunals can also award compensation for injury to feelings — the distress, humiliation, or anxiety caused by the discrimination itself, assessed separately from financial loss.

These injury to feelings awards are guided by what are known as the Vento bands, updated annually. For claims presented from 6 April 2026, the bands are £1,300 to £12,600 for less serious cases, £12,600 to £37,700 for cases that don’t merit the top band, and £37,700 to £62,900 for the most serious cases, with the most exceptional cases capable of exceeding that upper figure entirely. Where a claim also succeeds in showing the dismissal was automatically unfair for whistleblowing, similar injury to feelings principles can apply there too.

Other Types of Award a Tribunal Can Make

Beyond dismissal and discrimination claims, tribunals handle a range of other disputes with their own remedies. Claims for unpaid wages or unlawful deductions from pay — including unpaid holiday pay or unpaid notice pay — generally result in an award equal to the amount actually owed. Breach of contract claims can also be brought in the tribunal alongside a dismissal claim, though the tribunal’s jurisdiction here is capped at £25,000, a limit that’s remained unchanged for a long time; larger contractual disputes generally need to go to the civil courts instead.

Where a tribunal orders reinstatement or re-engagement following a successful unfair dismissal claim and the employer doesn’t comply, an additional award of between 26 and 52 weeks’ pay can be made on top of the basic and compensatory awards—though this is subject to the statutory weekly pay cap, limiting the maximum additional award to £39,052. And where an employer has failed to properly collectively consult ahead of a larger redundancy round, a protective award of up to 180 days’ pay per affected employee can be ordered — a remedy that sits entirely separate from any individual unfair dismissal claim those employees might also bring. Our guide on Settlement Agreements During Redundancy covers how this risk often factors into redundancy negotiations before a claim ever reaches a tribunal.

Uplifts and Reductions: How the ACAS Code Affects Compensation

Where a claim involves a disciplinary or grievance issue covered by the ACAS Code of Practice, a tribunal has the power to adjust the compensatory award up or down by as much as 25%, depending on whether the employer — or in some cases the employee — unreasonably failed to follow the Code. This can work in either direction: an employer who skipped proper disciplinary steps can see compensation increased, while an employee who unreasonably failed to raise a grievance before resigning or claiming can see it reduced. It’s a meaningful factor in practice, since a 25% swing on a substantial compensatory award is rarely a trivial sum.

Is There a Cap on What You Can Recover?

It depends entirely on the type of claim. Ordinary unfair dismissal compensation is currently capped, as set out above, though that’s changing from 2027. Discrimination and whistleblowing-related compensation is generally uncapped already. Breach of contract claims in the tribunal are capped at £25,000 regardless of claim type. And straightforward wage claims are generally limited only by the amount actually owed, rather than by any separate statutory ceiling.

Because the position varies so much by claim type — and because several of these figures change every April — it’s worth checking the current position specifically for your type of claim rather than assuming one figure applies across the board.

Contact Us for Employment Tribunal Support

Understanding what a claim might realistically be worth is often one of the first questions people want answered, and the honest answer depends heavily on exactly what kind of claim you have — which is rarely as simple as it first appears, particularly where a dismissal overlaps with a discrimination or whistleblowing element.

If you’re weighing up your options, our guide on Do I Need a Solicitor for an Employment Tribunal? covers what kind of support is available, from a one-off case review through to full representation.

Contact for Consultation

Final Thoughts

Employment Tribunal compensation isn’t a single figure or formula — it depends heavily on what kind of claim you’re bringing, and several claim types can overlap within the same case. Understanding which components apply to your situation, and which limits genuinely constrain your claim versus which don’t apply at all, is a useful starting point before deciding how to proceed.

Frequently Asked Questions

Is there a maximum amount an Employment Tribunal can award?

It depends on the claim. Unfair dismissal compensation is currently capped, though that cap is being removed from 2027. Discrimination and whistleblowing compensation is generally uncapped already, and tribunal breach of contract claims are capped at £25,000.

They’re guideline bands tribunals use when assessing injury to feelings awards in discrimination and related claims, split into lower, middle, and upper bands depending on how serious the case is, with figures reviewed annually.

Yes. Claims for unpaid wages, holiday pay, or unlawful deductions generally result in an award equal to the amount actually owed, without a separate statutory cap.

Yes. A tribunal can adjust a compensatory award up or down by as much as 25% depending on whether the employer or employee unreasonably failed to follow the ACAS Code of Practice.

Yes, in principle. Unlike unfair dismissal, there’s no statutory cap on compensation for financial loss in a discrimination claim, and injury to feelings is awarded on top of that.

It depends on the type of claim, your financial losses, and whether any of the higher-value or uncapped categories apply to your situation. Getting advice on the specifics of your case is generally the only reliable way to get a realistic figure.

1 2 3 4 5