In the case of Chawla v Hewlett Packard Ltd, the EAT was asked to apply a 10% uplift to an award for injury to feelings compensation, following the Court of Appeal case of Simmons v Castle. It declined to do so, holding that the requirement to uplift compensation does not apply to ET litigation as a whole.
The Simmons case implemented the 10% increase in general damages that had featured strongly in the Jackson Reforms but was omitted from the associated legislation that made significant changes to the costs regime in the civil courts.
As such, from 1 April 2013, success fees and after the event (ATE) insurance premia were no longer recoverable, leaving Claimants exposed to higher risk, and lower recovery of costs. Accordingly, the 10% increase needed to be introduced to recompense Claimants for this potentially significant change.
As Claimants in the Employment Tribunal system do not face the same risks in terms of costs, the EAT held that Simmons could not be said to apply.