1. Introduction
Section 82 of the Employment Equality Acts 1998 to 2015 sets out the compensation and other forms of redress that the WRC may order where a complaint is upheld. Compensation in employment cases is generally capped at two years’ remuneration, with a fixed minimum and maximum for non-employee complainants.
This article considers the statutory framework for compensation, the factors that influence the level of an award, and the additional forms of redress available beyond monetary compensation.
2. Legislation and Case Law
Section 82(1) empowers the WRC to make an order for compensation, an order for equal remuneration, an order for re-instatement or re-engagement, or an order requiring the employer to take a specified course of action.
Section 82(4) caps compensation in employment complaints at two years’ remuneration, calculated by reference to the complainant’s actual remuneration at the date of the decision. Where the complainant was not in employment with the respondent, the cap is €40,000.
In Von Colson v Land Nordrhein-Westfalen C-14/83, the Court of Justice held that sanctions for discrimination must be effective, proportionate and dissuasive. The Labour Court in An Employer v An Employee EDA1124 confirmed that this principle applies in setting the level of awards under Section 82.
The Workplace Relations Act 2015 transferred jurisdiction in equality complaints to the WRC, while preserving the substantive entitlements and the two-year compensation cap.
3. Decision
The WRC will assess the seriousness of the discrimination, the impact on the complainant, the conduct of the employer (including whether any apology or remediation was offered), and the deterrent effect of the award.
Awards at the upper end of the cap are typically reserved for serious cases involving deliberate or repeated discrimination, dismissal arising from discrimination, or psychological injury. Awards at the lower end may apply where the discrimination was unintentional and promptly remedied.
Re-instatement or re-engagement orders are less common in discrimination cases than in unfair dismissal cases, but they remain available where the employment relationship is capable of being restored.
4. Takeaway
Employers should be aware that the two-year cap permits substantial awards, particularly for higher-earning complainants. A failure to take preventive action or to engage constructively with an internal complaint may significantly increase exposure.
Complainants should ensure that their remuneration is fully documented, including base salary, bonus, benefits-in-kind and pension contributions, as the cap is calculated on a total remuneration basis..
5. Further information
This article was prepared for informational purposes only. For further advice, please email enquiries@crushell.ie or contact the offices of Crushell & Co Solicitors.
6. About Crushell & Co
Crushell & Co is a specialist law firm focused on protecting and advancing the rights of employees in Ireland. We offer a nationwide service, advising individuals on a wide range of legal and regulatory issues arising at work, including employment law, employment immigration and workplace accidents and injuries.
We help employees understand their position and options by translating complex legal issues into clear, practical advice. Our approach is tailored to each client, ensuring that our strategy is aligned with their personal and professional circumstances.
Connect: @CrushellLaw or www.wordpress-576593-6594403.cloudwaysapps.com
