The scary truth behind Employment Tribunal Awards in 2024: What Employers Need to Know
Oliver Martin
August 21, 2025
Employment tribunals remain a significant area of risk for UK employers, and recent data highlights the scale of potential financial exposure. As businesses continue to navigate complex workplace issues, understanding the cost of getting people decisions wrong has never been more important.
Figures from 2024 demonstrate the wide-ranging impact of tribunal claims across different areas of employment law:
• Unfair dismissal – average award £13,749 (with a maximum basic award of £21,570 and compensatory award up to £118,223)
• Sex discrimination – average award £53,403, with the highest award reaching £995,128
• Age discrimination – average award £14,200
• Race discrimination – average award £29,532
• Disability discrimination – average award £44,483
• Sexual harassment – maximum payout of £43,900, with a potential 25% uplift if the employer is found to have taken no preventive action
These figures underline the importance of robust HR practices, not only to ensure fairness and compliance, but also to safeguard organisations from substantial financial and reputational damage.
Several factors are contributing to the upward trend in tribunal cases:
• Greater employee awareness of workplace rights
• A growing focus on diversity, equity and inclusion
• Heightened scrutiny around workplace culture following high-profile cases
• The impact of hybrid and flexible working arrangements on employment relationships
For employers, this means that tribunal risk is no longer confined to large corporations; small and scaling businesses are increasingly finding themselves exposed.
The true cost of a tribunal extends beyond the headline financial award. Employers often face:
• Legal fees and management time spent on litigation
• Reputational damage among employees, customers, and investors
• Reduced employee morale and trust
• Distraction from business growth and strategic priorities
While no organisation can eliminate risk entirely, there are clear steps that employers can take to reduce exposure:
• Ensure policies are up-to-date, clearly communicated, and consistently applied
• Provide training for managers on fair and inclusive practices
• Maintain transparent processes around grievances, performance management, and dismissals
• Take proactive measures to build an inclusive culture and address concerns early
• Seek expert HR or legal guidance where needed
The data from 2024 serves as a reminder of the importance of proactive people management. With average awards running into tens of thousands of pounds and some cases exceeding hundreds of thousands employment tribunals present a real and material risk for UK employers.
Businesses that invest in strong HR foundations are far better placed to protect themselves, support their employees, and create the conditions for sustainable growth.
