Sex (Discrimination) and the City

A leading city lawyer is in line for a record £13 million compensation payout over claims she suffered bullying and sexual discrimination by her colleagues.

Ms Switalski quit her £140,000 a year job as Head of Legal Affairs at City fi nance company F&C Asset Management following a sustained campaign of bullying, harassment, intimidation, sexual discrimination and victimisation. She claimed that her resignation amounted to constructive dismissal and she won her case before an Employment Tribunal. The employer appealed to the EAT, which heard the case in April this year.

The EAT issued its judgment in May and pointed out that its function was to consider points of law, not fact, and that its role was "not to say whether we agree or disagree with the Tribunal's conclusions. It is to determine whether or not the fi ndings under appeal are legally permissible or fl awed". On that basis, the EAT dismissed F&C's appeal, meaning that unless F&C appeals on to the Court of Appeal, the matter will now go back to the Employment Tribunal for assessment of compensation.   

Ms Switalski's lawyers estimate the cost of her psychiatric damage, loss of earnings-pension and diminished career prospects at £13.4 million - which would be Britain's highest ever sex discrimination award. The previous compensation award record for a sex discrimination case is believed to be £6.5 million won by bond trader, Allison Schieffelin, against Morgan Stanley in 2005.   

Quite apart from the obvious reaction of most normal employees and employers to the potential payout, it is worth considering whether it is appropriate that Employment Tribunals should be given the job of assessing compensation when amounts like this are in dispute. After all, until quite recently the maximum award a Tribunal could make was £12,000.