Payouts to victims of discrimination in the workplace have reached a record £3.35m, research by the Equal Opportunities Review (EOR) has showed.
The sum awarded by employment tribunals increased by £980,000, or 38%, in 2000, compared with the previous year.
The EOR research also showed a rise in payouts for disability cases, but a slight fall in sex discrimination cases.
Sue Johnstone of EOR said: "These latest figures are a wake-up call for employers... Such losses are completely avoidable... Employers must act now to reap the financial rewards of good business practice and to avoid damaging and costly discrimination claims in the future."
There were 316 discrimination cases where compensation was awarded in 2000: 186 of sex discrimination, 75 of race, 47 of disability, five of race and sex discrimination and two of disability and race discrimination.
Most payments were given to victims of sex discrimination. Half of the £3.53m was given to victims of sex discrimination, while 34% was given to those in race discrimination cases and 18% to those in disability cases.
The biggest payout was for Gurpal Virdi, wrongly sacked by the Metropolitan Police, who was awarded a reported settlement of £200,000.
