Compensation and taxation

Case 7: The facts

Sarah Vince-Cain's sex discrimination claim against her former employer succeeded. The appeal to the EAT related to the compensation award.

The ruling

The EAT decided that, unlike awards for loss of earnings, an "injury to feelings" award should not be grossed up to take account of any tax liability the claimant may have.

Secondly, the tribunal had been justified in finding that Vince-Cain had mitigated her loss by attending a university degree course. It was up to a tribunal to decide on the particular facts of a case whether this was adequate mitigation. In this case, it felt that Vince-Cain would have been unlikely to find employment similar to her previous job that gave her the same flexibility with her childcare arrangements, and noted that she had worked when she could and would have left the course if suitable work had come up.

It also pointed out that the employer had not objected to this during the first year that she attended, while the proceedings were still in progress.

Orthet Ltd v Vince-Cain UKEAT/0801/03(2)