22 Apr 2025
Gemma Clark and Charlie Bass, of Wright Hassall, explain why no one is a winner in this situation and how to take action to preserve harmony at work
Image: Tetiana / Adobe Stock
The relationship built between employee and employer is very important for a happy and functional work environment. However, disputes can and do arise between employer and employee, making the working relationship strained and difficult to navigate at times.
While many differences of opinion can be ironed out through meetings and finding a suitable compromise for both parties, if an employee considers that their employer is breaking employment law, then they may decide to take them to an employment tribunal. But in this situation no one wins – neither employer nor employee – despite the outcome of the case.
Many reasons exist why an employee may take their employer to tribunal, such as failure to pay wages, disputes over working hours or if they consider they have been unfairly dismissed from their employment. However, employers can defend any such claims, with the intention behind the tribunal process being to fairly balance the relationship between employee and employer, seeing that the rights of both parties are upheld.
By looking at employment tribunal data, it is easy to see where issues arise and where action can be taken to preserve workplace harmony.
Unfair dismissal remains one of the most frequently brought claims in the employment tribunal, with many notable trends over the years.
Since the pandemic, a notable rise has occurred in successful claims of this type, with 2022-23 recording the highest number of successful claims in almost a decade (787). The post-pandemic increase likely reflects the economic instability and resultant redundancies and dismissals during the pandemic, coupled with an increased awareness of employee rights.
However, the 2023-24 statistics, with 646 successful claimants receiving compensation, suggest the numbers could be returning back closer to pre-pandemic levels.
In terms of compensation for successful claimants, the average award has fluctuated over the years, increasing in more recent years largely driven by inflation. In 2023-24, the average payout was £13,749. The potential for an upward trend in awards, to reflect the growing financial impact of unfair dismissal claims, highlights the importance of due process being followed.
Disability is the protected characteristic that by far provides the highest number of successful discrimination claims each year, with 124 successful claims made in 2023-24. These figures have remained relatively stable over the past decade, with a slight increase in the years following the pandemic.
During 2022-23, we saw the highest number of successful claims on record; however, this year’s statistics suggest the numbers may be returning to pre-pandemic levels.
Despite this, the most recent average award figure being £44,483 suggests that when claims are made, significant compensation is often awarded. This type of discrimination frequently ranks first in terms of highest average compensation for discrimination claims in any given period. Employers do need to ensure that they are providing the necessary support to employees with disabilities and making reasonable adjustments where possible to assist them at work.
The data shows a consistent rise in successful sex discrimination claims over the past few years, with 71 successful claims recorded in the latest period.
The average compensation award spiked at £53,403 in the latest statistics, and this figure has been consistently rising over the past five years, from a low of just £8,774 in 2018-19.
This trend could be attributed to heightened awareness and focus on gender equality in the workplace, as well as greater scrutiny of employers in recent years, with new stories commonly featuring content on this type of discrimination in the workplace, potentially prompting more employees to come forward with their claims.
In recent years, race discrimination claims have also risen, with a total of 52 successful claims awarded compensation in the most recent period. This number has been rising since 2018, which recorded just 22 successful claimants.
The average award has also trended in the same direction, with £29,532 being the most recent figure, highlighting significant cases resulting in higher compensation.
To counter the rising risk of disharmony, it is crucial that employers invest in training programmes that focus on equality and inclusion, which can help deal with potential issues before they escalate into formal disputes. Maintaining an up-to-date equality, diversity and inclusion policy is also helpful.
Interestingly, age discrimination led to only 12 successful claims in the most recent financial year. This in itself is not unusual, with an average of 11 successful claims made each year over the past decade. Rather staggeringly, however, the average award was slightly more than six figures, sitting at £102,891.
Recent campaigns (such as Age Without Limits) that aim at highlighting the requirement for employers to tackle bias or prejudices in relation to age in the workplace to protect workers from discrimination could be considered one of the reasons behind the steady number of successful claims.
The number of successful claims linked to sexual orientation has not reached double figures for more than a decade. This year recorded seven successful claims, with an average of £27,070 awarded in compensation.
The lower number of claims for this protected characteristic may indicate that an acceptance and inclusivity for all individuals, regardless of sexual orientation, is commonplace within the workplace.
Religious discrimination was the protected characteristic that led to the fewest successful claims in the most recent reporting period, with only three successful claims noted. Of these, the average award was £10,750, ranking as the lowest average of all of the types of discrimination claims that can be brought before the tribunal.
This may be a reflection of improved understanding and acceptance of diverse religious practices in the workplace, as well as effective adjustments made by employers to support their staff’s religious beliefs.
It is important to note that the statistics only provide an indication of where employers are potentially falling short of their legal obligations and, therefore, the further steps they can take to prevent discrimination in the workplace.
The ever-increasing awareness of discrimination issues, combined with the potential for substantial compensation, may lead to employees feeling more empowered to challenge acts of discrimination – the increases shown in the statistics suggest that this could be the case.
This trend shows the importance of employers taking proactive measures to prevent discrimination in the workplace.
By implementing robust diversity and inclusion initiatives, providing training, and ensuring compliance with the relevant legislation, all – employer and employee – can benefit from an improved workplace culture, productivity, and employee satisfaction.