Cases2305759/2021

Claimant v ICTS (UK) Limited

4 June 2025Before Employment Judge MassarellaLondon Southon papers

Outcome

Claimant succeeds£11,586

Individual claims

Victimisationsucceeded

The tribunal found that the claimant's dismissal was an act of victimisation. This was a single act of victimisation connected with termination of employment, for which the claimant was awarded compensation for injury to feelings.

Facts

This is a reconsideration judgment following a remedy hearing in which the claimant succeeded in a claim of victimisation connected to his dismissal. The tribunal had originally awarded injury to feelings compensation and grossed it up to account for tax. The respondent applied for reconsideration on the basis that grossing up was inappropriate as the award fell below the £30,000 tax-free threshold.

Decision

The tribunal granted reconsideration and varied the remedy judgment. It accepted the respondent's argument that the award should not have been grossed up because compensation for injury to feelings related to termination is only taxable above the £30,000 threshold under ITEPA 2003. The revised total award is £11,586.02 (£9,000 injury to feelings plus £2,586.02 interest).

Practical note

Tribunals should not gross up injury to feelings awards connected to termination unless the total termination payment exceeds the £30,000 tax-free threshold under ITEPA 2003 s.403(1).

Award breakdown

Injury to feelings£9,000
Interest£2,586

Vento band: lower

Legal authorities cited

Moorthy v HMRC [2018] ICR 1326Slade and another v Biggs and others [2022] IRLR 216

Statutes

Income Tax (Earnings and Pensions) Act 2003 s.401ITEPA 2003 s.406ITEPA 2003 s.403(1)

Case details

Case number
2305759/2021
Decision date
4 June 2025
Hearing type
reconsideration
Hearing days
Classification
procedural

Respondent

Sector
other
Represented
No

Claimant representation

Represented
No