Employers must act now to reap the financial rewards of good business practice and to avoid damaging and costly discrimination claims in the future

Sue Johnstone, editor of EOR

The sum awarded by employment tribunals amounted to an increase of 38% or �980,000 in 2000, compared with the previous year

Research by the Equal Opportunities Review (EOR) also showed a rise in payouts in race and disability cases, but a slight fall in sex discrimination cases.

Sue Johnstone of Equal Opportunities Review said the figures should be a "wake-up call for employers".

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The figures illustrate awards for all 316 discrimination cases where compensation was awarded in 2000.

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There were 186 cases of sex discrimination, 75 of race and 47 of disability, five of race and sex discrimination and two of disability and race discrimination during the year.

Most payments were given to victims of sex discrimination - 50% of the �3.53m was given to victims of sex discrimination, while 34% was given to those in race discrimination cases and 18% for disability cases.

The biggest payout was for Gurpal Virdi, wrongly sacked by the Metropolitan Police, who was awarded a reported settlement of �200,000.

Ms Johnstone said: "These latest figures are a wake-up call for employers... Such losses are completely avoidable... Employers must act now to react the financial rewards of good business practice and to a avoid damaging and costly discrimination claims in the future."