Tribunals (Maximum Compensation Awards) Bill

Brian Binley Excerpts

Friday 17th June 2011 Commons Chamber

[Mr Chope]

To put the issue in context, I will quote briefly from some newspapers. On 24 October 2008, the MailOnline had the headline “Asian bank worker gets record £2.8m race discrimination payout”. On 10 September 2009, another headline read: “Sacked council manager wins £1 million age discrimination payout”,

and a report has come out in the past few days saying:

“Discrimination compensation payouts hit an all time high.

A recent annual survey of compensation awards in the Equal Opportunities Review has revealed that the amount being paid out by employers in discrimination cases has more than doubled in two years.”

[Mr Brian Binley (Northampton South) (Con)]

Does my hon. Friend recognise that there is a level below a claim which employers are quite concerned about? They are being threatened with being taken to a tribunal as a way of extracting money from them. Many employers are advised at local level to give in and not allow the case to go to a tribunal. In that respect, there is a certain element of the blackmailers charter about all this. I wondered whether my hon. Friend had thought about that and why he had not included it in his Bill.

[Mr Chope]

I am sure that I could have included it in the Bill, but it is implicit that having a lower maximum figure in the case of unfair dismissal and an absolute maximum figure—there is no maximum figure at present—in the case of discrimination cases will reduce the bargaining power in a situation such as that my hon. Friend outlined. He described it as blackmail. We know that companies can sometimes be threatened with being taken to a tribunal and subject to all sorts of allegations it will find difficult to answer, so they pay up to an aggrieved ex-employee.