It should be well known that discrimination claims can be brought against individuals as well as companies, and that financial liability is unlimited. However Tribunals have usually divided up compensation where both are employers and employees are liable. This usually meant that the company ended up paying more than the individual.

However, following a recent decision, this rule has changed (and the law clarified).

This means that, when the employing company goes bust, the individual can potentially be liable for the whole amount, including the employer’s share, even if they were only partly to blame.

Individuals need to be aware that they could potentially be personally responsible for the entirety of large compensation awards.

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Updates: For employers: Discrimination | For employees: Discrimination |

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