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Hello Flash

I have not personally experienced this myself, but I have had clients in a similar position, at the time his first lawyer advised to just pay and that was fine but the amount was a joke. My client then hired another lawyer and they were able to reduce a more realistic settlement. Though at present with the new Work Laws and to be honest not sure how many of us actually know too much about them this type of claim is treated.

Personally I would not cave, if I knew there was no merit in the claim I would not wish to establish a precedent for other staff by paying that staff member. The facts of the case should be able to prove if there was discrimination or not, the reality is also the staff member may also be bluffing as they will also needs funds to prove unless they find a lawyer that will charge on success

It is very hard to give answer not having the facts of the situation though

Hope it works out for you