Chagger Deduction Overturned in KJ v British Council [2026] EAT 46

In KJ v British Council [2026] EAT 46, the Employment Appeal Tribunal (EAT) held that a 35% reduction to compensation for discrimination had been wrongly applied. The tribunal had relied on a “Chagger deduction”, which allows compensation to be reduced where there is a chance the claimant would have left employment in any event. However, the EAT found that the tribunal failed to construct a proper “but for” counterfactual. In particular, it did not consider whether the claimant’s apparent desire to leave, including job-seeking activity or a return to the UK, was itself influenced by the discriminatory treatment and harassment she had experienced. The EAT also upheld the tribunal’s finding that the sexual harassment claim was in time, forming part of "a continuing discriminatory state of affairs". The case has been remitted for a fresh assessment of compensation without the flawed 35% deduction.