A recent remedy decision has highlighted the huge awards that can be made by an Employment Tribunal.
Michalak v Mid Yorkshire Hospitals NHS Trust
Dr Michalak, a female Polish doctor, had moved to the UK from Poland in April 2002 and worked for the respondent until her dismissal in July 2008.
The Employment Tribunal found that Dr Michalak had been subjected to a campaign to bring her employment to an end. Senior managers of the Respondent had raised unjustified complaints about her, made repeated reference to her Polish origins and questioned her capability on many occasions due to her having trained in Poland.
The Employment Tribunal found that Dr Michalak, due to the treatment meted out to her by the Respondent, had suffered post-traumatic stress disorder, anxiety and depression. Her symptoms included insomnia, suicidal thoughts, nightmares, chest pain, lack of concentration and poor memory. The medical evidence presented to the Tribunal indicated that Dr Michalak was unlikely to ever be able to return to practising medicine.
The Tribunal awarded Dr Michalak compensation of almost £2.4 million, including £30,000 for injury to feelings, £56,000 for psychiatric injury, £168,234 for loss of earnings, £991,802 for future loss of earnings, £50,000 for medical treatment, £31,122 for cost of future care and £666,260 for loss of pension benefits calculated on the basis that she would never be able to work in such a position again. In addition, it awarded a 15% uplift for a failure to follow the now defunct Statutory Grievance Procedure in relation to a grievance raised by Dr Michalak about her treatment. As Tribunal awards are subject to tax, any award has to be ‘grossed up’ to ensure that the Claimant receives the full award. When grossed up, the total amount payable by the Respondent totals almost £4.5 million.
Interestingly, 3 senior managers (one of whom was the HR Director) were held jointly liable for most of the award with the Trust, meaning that the Claimant can enforce the judgment against any of them.
Comment
There is a statutory compensation limit of £68,400 (rising to £72,300 from 1 February 2012) for unfair dismissal awards; however compensation in discrimination claims is unlimited. Whilst the amount of compensation awarded in the above case is unusual (it is one of the highest amounts ever awarded), it is a cautionary tale for employers and employees. Employers should ensure they have a Diversity/Equal Opportunities Policy and train staff in how to behave appropriately at work. Had the Respondent taken such action, it would have had a defence to the proceedings brought by Dr Michalak.
Employees are often unaware that they can be personally liable for their own actions and as an employer it is worthwhile reminding them of that fact.
Employers need to be especially wary of employment disputes where there is the possibility of a future discrimination claim and take advice if they are in any doubt about how to proceed.
If this alert has been forwarded to you and you would like to sign up to receive regular alerts, you can do so using our online form.
If you have any comments or queries please do not hesitate to contact Joanne Holborn, Adrian Maitra, or Tom Scaife on 01228 552600. Alternatively, email one of the team at HR@baineswilson.co.uk.
13 January 2012
