Borg-Neal v Lloyds Banking Group – employee awarded over £470,000 for unfair and discriminatory dismissal

The Employment Tribunal has awarded the claimant in Borg-Neal v Lloyds Banking Group over £470,000 compensation following his unfair and discriminatory dismissal for use of an offensive racial term during training.

Case facts

In summary, Mr Borg-Neal was dismissed by Lloyds Bank for using ‘the N-word’ at a racial awareness training session. The tribunal upheld Mr Borg-Neals claims of unfair dismissal and disability discrimination on the basis that his misuse of language was consistent with his dyslexia, and it was not reasonable to dismiss him in the circumstances.

For full details of the facts and background to this case, please read our previous article - Unfair Dismissal: Borg-Neal v Lloyds Banking Group (aaronandpartners.com).

Compensation

At the remedy hearing, the employment tribunal awarded Mr Borg-Neal over £470,000 in compensation, which included:

• £309,867.86 for future loss of earnings (including a 5% uplift for Lloyds Bank’s failure to follow the Acas Code)

This amount was awarded on the tribunal’s estimate that it will take between one to two years for Mr Borg-Neal to return to work following poor mental health caused by his dismissal. At this point the claimant would be 61 and unlikely to secure a reasonably paid full-time position, which the tribunal took into consideration.  

• £15,000 for injury to feelings

The tribunal made an award in the middle Vento band in respect of Mr Borg-Neal’s shock, hurt, humiliation and damage to his self-esteem as well as the loss of a job he loved.

• £3,000 in aggravated damages

Aggravated damages were awarded in respect of Lloyds Bank’s resistance to reinstatement following the tribunal decision, by providing Mr Borg-Neal with a document which distorted the tribunal’s liability judgment and “rubbed salt into the wound”. 

• £23,000 for personal injury

The tribunal also awarded Mr Borg-Neal £23,000 for his severe depression and anxiety caused by the way in which Lloyds Bank dismissed him.

Recommendations under the Equality Act 2010

When upholding a discrimination claim, a tribunal can make appropriate recommendations to the employer to reduce the adverse effect on the claimant.

In this case, the tribunal made the following recommendations to Lloyds Bank:

• (i) To circulate the tribunal’s liability judgement to its board members and ask them to read and digest it.
• (ii) To note on Mr Borg-Neal’s records that the tribunal found his dismissal to be unfair and discriminatory.
• (iii) To inform the FCA that the tribunal found Mr Borg-Neal’s dismissal to be unfair and discriminatory.
• (iv) To provide Mr Borg-Neal with a neutral reference.

 Lloyds Bank have appealed, and this is awaiting processing by the tribunal.