Key point: Discrimination awards are uncapped — there is no upper limit on compensation. This makes discrimination claims among the most valuable in employment law, and means employers have strong incentives to settle.
What is discrimination at work?
Discrimination at work is unlawful under the Equality Act 2010. It occurs when an employee is treated less favourably because of a protected characteristic, or when an apparently neutral practice disproportionately disadvantages a group with a protected characteristic (indirect discrimination).
The 9 protected characteristics
- Age
- Disability
- Gender reassignment
- Marriage and civil partnership
- Pregnancy and maternity
- Race (including colour, nationality, ethnic or national origin)
- Religion or belief
- Sex
- Sexual orientation
Types of discrimination
- Direct discrimination — Treating you less favourably because of a protected characteristic (e.g. not promoting you because of your age)
- Indirect discrimination — A policy applied to everyone that disproportionately disadvantages a group you belong to
- Harassment — Unwanted conduct related to a protected characteristic that violates dignity or creates a hostile environment
- Victimisation — Treating you unfairly because you have made (or supported) a discrimination complaint
- Discrimination arising from disability — Treating you unfavourably because of something connected to your disability
- Failure to make reasonable adjustments — Where a disabled person is substantially disadvantaged by a provision, criterion or practice, and the employer fails to make reasonable adjustments
No qualifying period for discrimination claims
Unlike unfair dismissal, you do not need 2 years of service to bring a discrimination claim. On day one of employment (or even before employment begins, for example during a discriminatory interview process), you have the right not to be discriminated against.
What compensation can you receive?
Discrimination compensation at tribunal includes:
1. Financial loss (uncapped)
Loss of earnings, past and future, including pension contributions. Unlike unfair dismissal, there is no cap — if you lose a highly-paid job due to discrimination and it takes years to find comparable work, all of that loss is recoverable in principle.
2. Injury to feelings (Vento bands)
Compensation for the distress, humiliation and impact on your personal life caused by the discrimination. Awards are guided by three "Vento bands" (updated periodically — current figures for 2025/26):
| Band | Range (2025/26) | Typical use |
|---|---|---|
| Lower | £1,100 – £11,700 | One-off acts of discrimination, less serious cases |
| Middle | £11,700 – £35,200 | Serious cases not in the top band |
| Upper | £35,200 – £58,700+ | The most serious cases — systematic discrimination, very significant impact |
3. Personal injury / psychiatric injury
Where discrimination has caused a recognised psychiatric condition (e.g. clinical depression, anxiety disorder), a separate personal injury element can be claimed — assessed by medical evidence.
4. Aggravated damages
Where the employer's conduct was particularly high-handed, malicious or oppressive, tribunals can add aggravated damages on top.
5. Interest
Tribunals can award interest on discrimination compensation — currently 8% simple interest per annum from the date of the discriminatory act.
Discrimination and settlement agreements
Because discrimination awards are uncapped, employers facing strong discrimination claims are often willing to settle for significant sums. A discrimination claim significantly strengthens your negotiating position in settlement discussions — even where the primary claim might be unfair dismissal or redundancy.
If you believe discrimination was a factor in your treatment, always raise this with your solicitor — it may be the most valuable part of your case.
Calculate your potential award
Use our Employment Tribunal Calculator — it includes Vento band options for injury to feelings and models the uncapped discrimination award alongside your basic and compensatory figures.