Workplace discrimination is not only wrong, but also expensive, and getting more so. For UK employers, the numbers speak for themselves. If an employee takes you to tribunal for discrimination and wins, the average award is far from pocket change.
Disability discrimination tops the list, with an average award of £45,435. That figure alone should be enough to make any business pay attention. But it doesn’t stop there. Sex discrimination claims average £37,607, sexual orientation £31,623, race £23,070, religion or belief £19,332, and age discrimination still comes in at £14,210.
The average cost of discrimination tribunal awards in the UK
| Discrimination Type | Average Tribunal Award |
| Disability | £45,435 |
| Sex | £37,607 |
| Sexual orientation | £31,623 |
| Race | £23,070 |
| Religion or belief | £19,332 |
| Age | £14,210 |
And those are just the awards. Once you add in legal fees, HR time, internal disruption, the potential PR fallout, and the stress on everyone involved, the true cost is significantly higher. For many businesses, especially smaller ones, a single claim could be devastating.
Most of these cases don’t start with overt hostility or deliberate malice. They usually stem from something more mundane like a poor process, an out-of-date policy, or a manager who simply doesn’t know better. That’s the frustrating part. In many cases, the employer didn’t mean to discriminate, but they failed to take the steps necessary to prove they didn’t.
Why employers get it wrong
Too often, companies treat inclusion and discrimination prevention as a legal formality. A policy sits untouched in a shared drive. Training is completed once and never revisited. Concerns are brushed off because they weren’t “raised through the proper channels.”
The legal system rightly places the burden on employers to get this right. If an employee raises a discrimination concern and the matter goes to tribunal, the focus isn’t just on what happened. It’s on what the business did — or didn’t do — to prevent it. Were there clear policies? Did managers know how to act? Was the workplace culture safe for someone to speak up before things escalated?
Reducing the risk of a discrimination claim
To protect your business and, more importantly, your people, it’s not enough to have a dusty equality policy or a one-off diversity session. You need to embed fairness and inclusion into the bones of your organisation.
Start by making sure your policies are real, meaningful, and understood. That means writing policies your team actually believes in, not just ones that tick a legal box. Then comes training. Managers are your front line. If they don’t know how to spot issues early, respond appropriately, or make adjustments when needed, then you’re vulnerable.
The work doesn’t stop there. Employees need to feel confident that raising a concern won’t backfire. Creating that kind of culture requires consistency, trust, and visibility from the top. Leadership must model inclusive behaviour, act decisively when issues arise, and treat complaints not as annoyances, but as early warning signs.
It also means documenting everything. Decisions, meetings, follow-ups. It’s not just good practice, it’s protection. In a tribunal, evidence matters. If you’ve made an effort to be fair, proactive and reasonable, you need the records to prove it.
Training isn’t optional, it’s risk management
At the heart of every discrimination case is a moment where someone didn’t know what to do, or did know but failed to act. That moment is often preventable. And one of the most effective ways to prevent it is through targeted, ongoing training.
Training is more than a compliance requirement; it’s a frontline defence. While policies set the rules, training equips people to actually apply them. This helps them to recognise a discriminatory remark, to make a reasonable adjustment without waiting for a tribunal ruling, or to intervene when something feels off. Without this capability, even the best-written policies fall flat.
Managers in particular need to understand the legal landscape they operate in. They’re often the first to hear a concern, the ones approving time off for medical appointments, or fielding requests for workplace accommodations. If they haven’t been trained on the basics of discrimination law, how to handle complaints, or how to record and escalate concerns appropriately, the business is exposed.
And it’s not just about preventing the worst-case scenarios. Good training can stop issues from escalating. It helps staff feel confident raising concerns early, before they turn into formal grievances or legal action. It builds a culture of trust and responsiveness, and that culture can be one of your strongest assets in defending against claims.
Critically, training needs to be regular and relevant. A single e-learning module completed during onboarding isn’t enough. People forget. Laws change. Expectations evolve. Embedding inclusion into your workplace means making learning part of your culture. Through refresher sessions, real-world case studies, scenario-based discussions, and leadership buy-in.
It’s no coincidence that the companies who invest in consistent, high-quality training tend to face fewer legal issues. When people know their responsibilities, feel confident speaking up, and see their employer take fairness seriously, the risk of discrimination drops significantly.
Ultimately, the businesses that get this right don’t just avoid tribunal costs. They attract better talent, keep their teams engaged, and build reputations as inclusive, forward-thinking employers. The price of getting it wrong is steep. But the value of getting it right? That’s immeasurable.
If you’re serious about avoiding a discrimination claim, the time to act is now. Not when someone raises a grievance or after legal papers arrive. Now.
Checklist: How to reduce the risk of discrimination claims
You can’t eliminate risk entirely. But you can drastically reduce it.
Have clear, accessible, and legally sound policies
- Cover all protected characteristics under the Equality Act.
- Make sure policies are jargon-free and visible to all staff.
- Regularly update them to reflect case law and best practice.
Train your managers properly
- One-off training is not enough.
- Focus on practical skills: having sensitive conversations, responding to complaints, and recognising unconscious bias.
- Run refresher sessions and scenario-based workshops.
Embed early-warning mechanisms
- Encourage open feedback.
- Create safe, confidential reporting channels.
- Act quickly on grievances — delays can be fatal in tribunal defence.
Make adjustments a norm, not a favour
- Don’t wait for a formal diagnosis to provide workplace adjustments.
- Train teams to understand what reasonable means in context.
Document, document, document
- Record decisions, conversations, and actions taken.
- Keep notes when concerns are raised — even informally.
- This can be your best defence in the event of a claim.
Walk the walk
- Leadership should actively support inclusion.
- Celebrate diversity in more than just words – build a culture of inclusion
