What Does an Employment Tribunal Claim for Harassment Actually Cost?
An employment tribunal claim for harassment or discrimination can cost an employer far more than the compensation award alone. In the published 2023/24 tribunal award figures, the average sex discrimination award was £53,403. That is an average for successful sex discrimination awards, not the average cost of every harassment claim. Add potential legal fees, management time and, in a qualifying sexual harassment case, an uplift of up to 25%, and the financial exposure deserves serious attention from estate and letting agencies.
In Short: There is no statutory cap on compensation for discrimination or harassment under the Equality Act 2010. In the 2023/24 figures, the average sex discrimination award was £53,403 and the highest was £995,128. A tribunal may add up to 25% to compensation in a successful sexual harassment claim where the employer breached its preventative duty. Legal defence can cost many thousands more. Two further employment law changes are due in October 2026.
Key Facts
- The average sex discrimination award was £53,403 in the published 2023/24 tribunal award statistics; individual discrimination awards are uncapped, unlike the compensatory award for unfair dismissal.
- The highest sex discrimination award in that reporting period was £995,128. This does not mean an agency should expect an award of that size in a typical case.
- Under the Worker Protection (Amendment of Equality Act 2010) Act 2023, a tribunal can add up to 25% to compensation for sexual harassment where an employer breached its duty to take reasonable preventative steps.
- From 1 October 2026, the time limit for bringing most Employment Tribunal claims extends from three months to six for relevant acts from that date. The stronger “all reasonable steps” duty and express third-party harassment liability are scheduled for 30 October 2026.
- Single Employment Tribunal claim receipts rose 23% in 2024/25 compared with the previous year, according to Ministry of Justice statistics. That overall figure is not a measure of harassment claims specifically.
- The Sentry costs £39.50 + VAT per person per year. For a team of 10, that’s £395 + VAT a year.
The Award Itself Is Only the Starting Point
The headline figure most people quote is the compensation award, and it can be a genuinely large one. The average award for a sex discrimination claim was £53,403 in the published 2023/24 statistics. The highest was £995,128. These figures describe awards in a particular claim category and reporting period; they should not be read as a prediction of the outcome of an individual agency’s case.
Unlike the compensatory award for unfair dismissal, Equality Act discrimination awards have no statutory ceiling. Tribunals assess compensation on the facts, including financial loss and injury to feelings. There is no minimum company size that exempts an agency from this exposure. Our Worker Protection Act guide explains the preventative duty that sits alongside it.
Why This Matters More in Property Than in Most Sectors
Negotiators and property managers regularly spend part of their working day alone with strangers, in empty houses, flats or offices, often in the evenings or at weekends. That’s simply the nature of a solo viewing, and it can create opportunities for harassment or abuse that a supervised office role may not. The same issues arise for housing staff visiting properties alone. As the proposed “all reasonable steps” duty approaches, agencies should be able to explain what they have done to assess and reduce these risks.
The Uplift That Most Employers Don’t Know About
On top of a compensation award for sexual harassment, the Worker Protection (Amendment of Equality Act 2010) Act 2023, in force since October 2024, allows a tribunal to add up to 25% where the employer is found to have breached its duty to take reasonable steps to prevent sexual harassment. It is not an automatic 25% addition to every discrimination or harassment award.
Take £53,403 as a purely illustrative base award. A 25% uplift would add £13,350.75, bringing it to £66,753.75 before legal costs. Whether an uplift applies, and its amount, depend on the type of claim, the tribunal’s findings and the employer’s preventative actions.
Legal Costs Are a Second Bill, Not a Footnote
Compensation is what makes headlines, but it isn’t the only cost. A contested claim that runs to a full hearing can involve days of solicitor time, plus any barrister’s fees. Fees vary widely by case and adviser, so an agency should seek a case-specific estimate rather than assume a standard bill. For a small or mid-sized agency without an in-house legal team, that can be a significant, unplanned outlay on top of any award.
Then there’s the cost that doesn’t appear on an invoice at all: management time spent preparing a defence, the reputational impact of a claim becoming public, and the staff turnover that can follow a contested dispute in a small team. None of this shows up in the headline award figure, but all of it can cause disruption.
Why the Trend Line Matters as Much as the Numbers
Single Employment Tribunal claim receipts rose 23% in 2024/25 compared with the year before, according to Ministry of Justice statistics. That is an overall claims figure, not proof that any individual agency’s harassment risk has risen by 23%. Two further changes are due. From 1 October 2026, the time limit for bringing most claims extends from three months to six for relevant acts on or after that date. From 30 October 2026, the duty to prevent sexual harassment is scheduled to strengthen from “reasonable steps” to “all reasonable steps”; the Employment Rights Act 2025 also provides for employer liability for certain third-party harassment, subject to its statutory conditions and defences.
An agency assessing its own risk in 2026 is not looking at a static picture. The window to bring a claim is widening, and the bar for what counts as adequate prevention is due to get higher. Read our guide to the harassment law changes for estate agents for the wider legislative timeline.
If a claim landed on your desk tomorrow, what would legal representation and a potentially uncapped award mean for your business this year? Book a free demo to see how The Sentry’s Compliance Portal can help document the safety measures your agency takes. No product alone guarantees a defence or prevents an uplift.
Setting the Cost of Prevention Against the Cost of a Claim
The Sentry costs £39.50 + VAT per person per year. For a team of 10, that’s £395 + VAT a year in total. Set against the £53,403 average sex discrimination award in 2023/24, that’s less than 1% of the illustrative award, before legal fees or wider disruption. The comparison does not estimate the chance of a claim or its likely outcome for any particular agency.
This is a case for assessing a known annual cost against a potentially much larger, uncertain risk. The Sentry’s Compliance Portal can help create a documented record of safety activity; an employer also needs appropriate risk assessments, training, policies and follow-through. See pricing for the current plan.
Frequently Asked Questions
Is there really no maximum amount a tribunal can award for a harassment claim?
Discrimination and harassment awards under the Equality Act 2010 have no statutory compensation cap. The award still depends on the evidence and the loss the tribunal finds. The £995,128 figure is the highest sex discrimination award in the published 2023/24 statistics, not a typical harassment award.
What is the 25% uplift and when does it apply?
Where a sexual harassment claim succeeds and the tribunal finds that the employer breached its preventative duty, it can increase the compensation by up to 25%. The current duty is to take reasonable steps; the standard is scheduled to tighten to “all reasonable steps” from 30 October 2026.
How much does it actually cost to defend a tribunal claim, aside from any award?
Legal fees depend on the complexity of the claim, the amount of work required and whether it settles or goes to a full hearing. Solicitor and barrister’s fees are separate from any compensation award, so obtain a case-specific estimate.
Are small or independent agencies actually at risk of awards this size, or is this mainly a large-company problem?
Small and independent agencies are within scope. There is no exemption or reduced compensation cap based on company size. That does not mean a large award is likely in any particular case.
Why are tribunal claims increasing, and is this likely to continue?
Ministry of Justice statistics show single claim receipts rose 23% in 2024/25 compared with the previous year. The October 2026 changes may affect future claims, but their effect on claim volumes and award values cannot yet be known.
Rebecca Evans is COO of The Sentry, specialising in staff safety in the property sector.
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