Age Discrimination and Enhanced Redundancy Pay Schemes

Under the Employment Equality (Age) Regulations 2006, discrimination on age grounds can sometimes be justified. The statutory redundancy scheme is based on age and length of service but is exempt, by Section 33 of the Regulations, from being discriminatory. However, an employer’s own enhanced redundancy pay scheme is only exempt if it mirrors the statutory scheme, applying the same multiplier to all aspects of it – see Section 33(3) of the Regulations – or if it can be objectively justified as a ‘proportionate means of achieving a legitimate aim’, such as rewarding loyalty or providing assistance to older employees who might find it harder to find another job.

 

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