Discrimination Compensation Has Changed: Why Old Case Values No Longer Apply
- Brian AJ Newman LLB
- Jun 26
- 4 min read
If Someone Tells You "Discrimination Cases Only Pay $20,000" – They're Living in the Past
One of the most persistent myths in Australian employment and discrimination law is that successful discrimination complaints only attract modest compensation.
For years, employers, insurers and even some advisers routinely pointed to historical decisions where compensation for hurt, humiliation and distress fell between $12,000 and $20,000.
That argument is now fundamentally outdated.
In one of the most important discrimination compensation decisions in Australia, the Full Court of the Federal Court made it clear that historical awards had significantly undervalued the real impact of unlawful discrimination.
The landmark decision is:
Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82
It changed the landscape for compensation in Australian discrimination law.
The Richardson Decision
The case involved a young employee who was subjected to repeated sexual harassment in the workplace.
At first instance, the Federal Court awarded only $18,000 for the psychological and emotional harm suffered.
The employee appealed.
The Full Court considered whether Australian courts had been consistently undervaluing the impact of discrimination and harassment.
Its answer was unequivocal.
The Court increased the award for non-economic loss from $18,000 to $100,000.
Why Was the Award Increased So Dramatically?
The Full Court recognised that previous Australian decisions had failed to keep pace with modern community standards.
The Court observed that awards made many years earlier had become anchored at unrealistically low levels and no longer reflected contemporary expectations about the seriousness of unlawful discrimination.
The Court stated that compensation should properly recognise:
humiliation
embarrassment
loss of dignity
anxiety
emotional suffering
psychiatric injury where established
ongoing psychological effects
the personal impact of discrimination on the victim's life.
Importantly, the Court acknowledged that discrimination frequently causes injuries that cannot be measured simply by financial loss.
Some of the most significant damage is to a person's dignity, confidence, reputation and psychological wellbeing.
Why Richardson Matters Today
Richardson remains one of Australia's leading appellate authorities on compensation for non-economic loss.
Its importance cannot be overstated.
The decision effectively tells courts and tribunals that:
Historical discrimination awards should not automatically be treated as an appropriate benchmark.
Instead, each case must be assessed according to today's community expectations and the actual harm suffered by the individual.
Non-Economic Loss Is Real Loss
Many workers wrongly believe they must prove a financial loss before they can receive substantial compensation.
That is incorrect.
Compensation may be available for:
humiliation
emotional distress
anxiety
depression
psychiatric injury
loss of enjoyment of life
damage to relationships
damage to professional reputation
loss of confidence
loss of self-esteem.
Where medical evidence supports psychological injury, compensation may increase significantly.
Every Case Depends on Its Own Facts
Richardson did not create a rule that every discrimination case should receive $100,000.
Rather, it established an important legal principle:
Compensation must properly reflect the seriousness of the unlawful conduct and the actual harm suffered.
The amount awarded will always depend on factors such as:
the severity of the discrimination
how long the conduct continued
whether the conduct was intentional
the vulnerability of the worker
any psychiatric injury
medical evidence
ongoing symptoms
impact upon employment
damage to reputation
future effects.
Medical Evidence Can Be Critical
One lesson from many successful discrimination cases is that good evidence matters.
Helpful evidence may include:
reports from treating psychologists
psychiatrist reports
GP records
counselling records
medication history
witness evidence from family and friends
employment records showing deterioration in performance or attendance.
Strong medical evidence often provides independent support for the emotional harm suffered.
Employers Should Take Notice
The days of assuming discrimination complaints represent only a modest financial risk are over.
Where discrimination causes significant psychological harm, employers may face substantial compensation together with legal costs, management time, reputational damage and workplace disruption.
The best approach remains prevention through:
respectful workplace cultures
effective complaints processes
early intervention
proper investigations
compliance with workplace discrimination laws.
The Bottom Line
The Full Federal Court's decision in Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82 marked a turning point in Australian discrimination law.
It recognised what many victims already knew:
The emotional and psychological harm caused by discrimination deserves meaningful compensation.
Historical awards from decades ago should no longer be treated as reliable indicators of the value of modern discrimination claims.
Every matter must be assessed on its own facts, with proper regard to the seriousness of the conduct, the evidence, and the real impact on the person affected.
Need Help Understanding Your Options?
If you believe you've experienced workplace discrimination, sexual harassment, bullying or adverse treatment, obtaining advice early can make a significant difference.
BAJN.au provides professional advocacy and representation in employment and human rights matters throughout Australia.
Important: We are Employment & Human Rights Advocates, not legal practitioners. We provide advocacy services and procedural assistance. If you require legal advice, you should seek advice from an Australian legal practitioner.
Key Authority
Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82
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