What counts as discrimination
The Equality Act 2010 protects nine characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation. The main types of claim are:
- Direct discrimination. Being treated worse because of a protected characteristic.
- Indirect discrimination. A rule that applies to everyone but disadvantages a protected group, and cannot be justified.
- Harassment. Unwanted conduct related to a protected characteristic that violates dignity or creates a hostile environment.
- Victimisation. Being treated badly because you complained about discrimination or supported someone who did.
- Disability claims. Failure to make reasonable adjustments, and unfavourable treatment because of something arising from disability. See sickness and ill health.
Why these claims are worth more
- No cap. Loss of earnings is awarded in full, including future loss and pension loss.
- Injury to feelings. A separate award, on top of financial loss.
- No qualifying service.
- Personal liability. Individual managers can be named as respondents.
- Reputation. Tribunal judgments are published online.
- Interest is added to awards.
Injury to feelings: the Vento bands
| Band | Used for | Range |
|---|---|---|
| Lower | Less serious cases, such as an isolated incident | £1,300 to £12,600 |
| Middle | Serious cases that do not merit the upper band | £12,600 to £37,700 |
| Upper | The most serious cases, such as a sustained campaign | £37,700 to £62,900 |
| Exceptional | Rare cases | Above £62,900 |
The bands are guidance issued by the Presidents of the Employment Tribunals and are updated each April. Most awards fall in the lower or middle band.
Evidence
Discrimination is rarely admitted. Tribunals draw inferences from the surrounding facts, and if you show facts from which discrimination could be concluded, the employer must prove an innocent explanation. Useful evidence includes:
- emails, messages and notes made at the time;
- how comparable colleagues were treated;
- the timing of decisions against events such as a pregnancy announcement, a diagnosis or a complaint;
- grievances raised and how they were handled;
- appraisals that contradict the reason now given.
Keep copies of what is yours to keep. Do not forward confidential business documents to a personal account.
Settlement talks are not automatically off the record
The protected conversation rule only covers ordinary unfair dismissal. In a discrimination claim, what was said in a settlement meeting can be used unless the common law "without prejudice" rule applies, and that needs an existing dispute. An employer who opens an exit conversation shortly after you announce a pregnancy or disclose a disability may be handing you evidence.
Time limits
For acts on or after 1 October 2026 you have six months less a day to contact Acas. For earlier acts the limit is three months less a day. Where there is a continuing course of conduct, time runs from the last act. Tribunals can extend time for discrimination claims if it is just and equitable, but do not rely on it. See timescales and deadlines.
Harassment: what is changing
From 30 October 2026 employers must take all reasonable steps to prevent sexual harassment of their workers, and become liable for harassment by third parties such as customers and clients. Failures will be easier to establish, which increases the value of harassment claims. See the harassment prevention duty.
Confidentiality
Employers settling discrimination claims usually ask for confidentiality. Decide what you want. Some people want privacy. Others want to be able to speak. The law already protects whistleblowing and reports to the police and regulators, and from 2027 clauses that silence workers about harassment or discrimination are due to be void unless the worker has asked for confidentiality under conditions set by regulations. See confidentiality clauses and NDAs.
Structuring the payment
Where part of the settlement compensates for discrimination that happened during employment and is unconnected with the termination, that part can be paid free of tax and outside the £30,000 limit. The allocation must be genuine and should be set out in the agreement. See tax on settlement agreements.
Frequently asked questions
How much is a discrimination settlement worth?
It is your financial loss plus an injury to feelings figure, discounted for the risk of losing. Injury to feelings alone ranges from £1,300 for a one-off incident to £62,900 for the most serious cases.
Do I need two years' service to claim discrimination?
No. There is no qualifying period.
Can my employer use a settlement agreement to stop me talking about harassment?
At present a confidentiality clause can cover the circumstances, subject to legal exceptions such as whistleblowing and reporting crime. During 2027 such clauses are due to become void unless strict conditions are met.
Is discrimination compensation taxed?
Compensation for discrimination during employment, not linked to the termination, can be paid tax-free. Sums connected with losing your job count towards the £30,000 exemption.
Sources
About this guide. This page is general information, not legal advice, and reflects the law and published government plans on the date shown above. Frederick George is a legal referral service, not a law firm. For advice on your own circumstances we will introduce you to an SRA-regulated solicitor.