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Bank ordered to pay £2 million compensation and carry out salary audit

In a remedy judgement that took nearly 6 months to draft, BNP Paribas London Branch (the “Bank”) were ordered to pay £2 million in compensation to an employee, Ms Macken, following a successful equal pay, direct sex discrimination and victimisation claim.

At the remedy hearing, it was accepted that Ms Macken’s injury had been caused by the Bank’s discrimination. This injury will prevent her from returning to her previous role at the bank – or any role which will pay her more than the benefits she receives under the Bank’s permanent health insurance (PHI) scheme. Ms Macken’s prognosis means she will qualify for benefits under the PHI scheme until retirement.

The tribunal held that the best way for Ms Macken to mitigate her future losses was to remain employed by the Bank and to continue receiving PHI payments for 15 years, until retirement.

The compensation of £2,081,449.70 paid to Ms Macken included payments for:

  • Past losses of £614,461.95, comprising £401,797.86 for equal pay and £212.664.09 for personal injury;
  • Future losses of £860,120.11;
  • Additional compensation of £124,315, including an injury to feelings award of £35,000 and aggravated damages of £15,000; and
  • Adjustments of £479,789.57, including an Acas uplift of £317,016.34.

The Bank was also ordered to carry out an equal pay audit under regulation 2 of the Equal Pay Audit Regulations 2014, and this is believed to be the first case in which the tribunal has ordered such an audit.