The maximum compensation that can be awarded to islanders who are discriminated against by their employer will rise to £30,000 after politicians unanimously backed an amended proposition.

Social Security Minister Lyndsay Feltham proposed changes to Jersey’s employment and discrimination legislation earlier this year.

Pictured: The law changes were proposed by Social Security Minister Lyndsay Feltham.

Debated in the States Assembly today, the updates were based on a report and recommendations on the island’s compensation awards regime published by the Employment Forum in June last year.

The key change was increasing the maximum compensation for discrimination by an employer from £10,000 to £50,000.

But an amendment lodged by Deputy Malcolm Ferey reduced the upper threshold for compensation to £30,000.

He raised concerns that the £50,000 maximum award could be “a barrier to employment” for some islanders.

“Employers who are considering taking on staff with differences may be deterred from doing so as the cost of getting it wrong could be financially catastrophic to the business or charity,” he said.

Politicians today voted to approve Deputy Feltham’s proposition, as amended by Deputy Ferey.

The Minister accepted an amendment from Deputy Sir Philip Bailhache to ensure any future changes to the compensation limits need to be approved by the States Assembly, and not by Ministerial Order.

The changes to the employment law will also require employers to give their employee a written statement setting out the reasons for dismissal when terminating their contract of employment.

If no reasons for dismissal are given, the employee has the right to refer the matter to the Jersey Employment and Discrimination Tribunal.

Compensation awards will be increased from a maximum of four weeks’ pay to a maximum of eight weeks’ pay under the new law, and the maximum award for hurt and distress will increase from £5,000 to £30,000.

The CEO of local equality and diversity charity Liberate spoke out in support of Deputy Feltham‘s proposition ahead of today’s debate, and called for more support to help employers understand the requirements of the discrimination law.

Kaye Nicholson said: “This is an important legislative improvement for those who are at risk of experiencing discrimination.

“There have been some concerns raised about the potential impact on smaller businesses and charities.

“We would strongly suggest, as others have, that rather than seeking to reduce the cap and disenfranchise people who experience discrimination from having a more appropriate level of compensation, relevant support is offered to help those employers understand their requirements under the discrimination law and access training to better improve inclusivity and remove barriers within their workplaces.”

Pictured: Kaye Nicholson is the CEO of local equality and diversity charity Liberate.

Kate Wright, Founder of The Diversity Network, said that Deputy Feltham’s proposition sends a “powerful message that in Jersey we value human beings above unethical employers and we want a modern and thriving business community”.

But local business leaders previously expressed concerns that increasing the maximum employment discrimination compensation would expose employers to “unsustainable financial risks” and deter investment in workforce expansion.

The Chamber of Commerce carried out a survey of its members in February, and 150 local businesses shared their views on the legislative amendments.

According to the survey, 72% of local businesses did not support raising the maximum discrimination claim compensation – fearing it could expose them to “unsustainable financial risks” in increased insurance premiums, and deter investment in workforce expansion.

Over half of respondents also said they anticipated increased expenditure on training, legal advice, and defending claims if the proposals were increased.

Pictured: Over 90% of employers agreed that the Tribunal should have the power to award costs to employers where claims are vexatious, malicious or without merit.

According to Chamber, 37.8% of businesses that have previously had to defend such claims incurred costs of over £10,000.

The 24-hour survey also revealed that 60% of employers worry that the changes may encourage opportunistic claims.

“This caution could inadvertently stifle diversity and inclusion efforts​,” said Chamber.

The survey responses also highlighted that employers feel “disproportionately vulnerable” in the tribunal system, with little recourse against false claims.

Therefore, 93% of respondents agreed that the Employment and Discrimination Tribunal should have the power to award costs to employers where claims are vexatious, malicious or without merit.