Overview

This briefing from Shoosmiths describes how the Employment Appeal Tribunal recently decided that two directors were personally liable to pay compensation for discrimination.

The EAT handed down its decision in Bungay and Paul v Chandel and others at the end of September 2011, holding that two board members were jointly and severally liable, together with the employer, to pay compensation and aggravated damages for discrimination. The fact that the employer went into liquidation after the compensation was awarded, leaving the directors responsible for the whole amount, highlights the vulnerability of individual respondents in similar situations.

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