The not-so-secret cost of "banter" - How a claim mounts up

Employment law news is awash this week with the story about a GP Practice Manager in North Wales who has now been awarded over £140k after her claims against her former employer were upheld.

The facts of the case are rather shocking, with the Practice Manager treated in a very derogatory way at the highest level in the Surgery. In terms of what not to do, it’s up there as a precedent!

The employee, Mrs Clark, was referred to as an ‘old knacker’ (which the Judge determined was reference to an old horse needing to be put down), a tumour, a drug user and, together with her family, the ‘Clarkashians’. Her mental ill-health was continually mocked, and she became a great source of gossip and entertainment within the Practice.  

Perhaps not unsurprisingly, when Mrs Clark’s complaints were ignored, it resulted in her resignation and a variety of Tribunal claims.

It serves as a reminder as to how the Tribunal assesses the value of claims, in this case, principally, unfair dismissal and various acts of discrimination.

A basic award of £16,844.50

This uses a formula, like statutory redundancy pay. It is therefore different for every employee and is based on weekly earnings, age and length of service. Higher earners, who are older, with longer service therefore get more.

Unpaid notice £6,606.31

This is the sum that should have been paid during the unworked notice period, given Mrs Clark resigned in response to the treatment she suffered.

Financial losses £60,873.89

The Tribunals look at what the employee has lost financially. This includes loss of earnings and pension contributions. Financial losses for discrimination (and whistleblowing) are, in theory, uncapped. The Tribunal will look at what the employee would have earned if they had not been unfairly dismissed or discriminated against and apply any reduction for other possible eventualities. Whilst the employee has a duty to reduce their losses (usually by finding a new job), this is often not feasible. In some cases, employees can claim career loss i.e. financial loss to the point they would have retired! Higher earners, and those with long term health issues which mean they can’t find a new job will naturally have higher claims.

Injury to feelings £43,208.56

Alongside financial loss, the Tribunal can award money for the way an employee has been made to feel, where discrimination or whistleblowing is concerned. Interest accrues too! There are guidelines but the more serious or horrendous the injury, the higher the payment. The employer’s argument that ‘old knacker’ was an affectionate term didn’t garner much sympathy here. This head of claim is not available for unfair dismissal claims on their own.

£15,270.13 for tax

A sum has to be added on, to account for the tax position. The employee is entitled to receive the net sum of compensation, so any tax is added on so that it is borne by the employer.
 
The numbers soon mount up in claims of this nature and the best solution is to avoid the issue in the first place; prevention is always better than cure. However, if you become aware of unacceptable behaviour, taking prompt and decisive action is crucial to avoiding escalation. The failure to address the grievance and take action in this case was deemed to be a separate act of victimisation, really adding insult to the injury.
 
If you are facing a difficult situation and need some support with resolving it, speak to one of our Employment Law team today.