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Does uplift apply to ET awards?
In Pereira de Souza v Vinci Construction UK Limited, the EAT has held that the 10% uplift identified in Simmons v Castle (a Court of Appeal decision) as being applicable to Tribunal awards is not in fact intended to apply to discrimination awards for injury to feelings or personal injury in the Employment Tribunal but only to civil claims. It held that the reason for the uplift, which is to compensate Claimants for the loss of a right to recover success fees and after the event insurance as part of their costs, does not exist in the Employment Tribunal as such a costs regime does not exist as such in Tribunal cases. The EAT held the view that the two previous EAT authorities, which did hold that the Simmons uplift should apply to awards in the Employment Tribunal, had been wrongly decided. The EAT heard full arguments on Simmons and other authorities in this case and considered that this was the kind of exceptional case which required departing from previous EAT authorities. The parties have been given leave to appeal.
This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.
For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.
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