With law suits and discrimination claims at record levels, employees are costing companies much more than just salaries and bonuses.

A study released this month by the think-tank Committed2Equality found that UK companies are now spending £210m a year on employment tribunal claims. When new age discrimination legislation comes into force in October, some predict this figure could rise by as much as 70% – meaning that by 2007 the total cost to UK business could reach £360m annually.