Sexual harassment grievance mishandled: £419k award for injury and lost earnings

What this case shows in practice

This case highlights how the handling of a sexual harassment grievance can itself become a source of further legal liability. The claimant, a digital transformation manager with a law degree and paralegal experience, rejected romantic overtures from her line manager over several months. When she resigned and then raised a grievance about the harassment, the employer's investigation and appeal process were found to be so flawed that they constituted harassment related to sex. The tribunal also found that refusing to let her withdraw her resignation was victimisation, because it was a response to her protected act of raising a grievance.

What the employer could have done differently

Volkerrail Limited could have avoided liability by taking the grievance seriously from the outset. Instead, the investigation was superficial and the appeal process was dismissive. The tribunal noted that the employer's actions during the grievance process were not just poor practice but were themselves unlawful harassment. A fair and thorough investigation, with proper consideration of the claimant's evidence, would have made a significant difference.

Why this result matters

The substantial award of £419,352.94 reflects the serious impact on the claimant's mental health and career. It includes compensation for injury to feelings, psychiatric injury, and significant financial losses. This case serves as a reminder that employers must not only prevent sexual harassment but also handle complaints in a way that does not compound the harm. For employees, it shows that the way a grievance is handled can be challenged in its own right, and that victimisation can take subtle forms, such as blocking a resignation withdrawal.