Is company redundancy scheme discriminatory?

I am over 50 years old and my post at work has been made redundant. My organisation pays an enhanced redundancy scheme whereby all redundant employees who have worked there for two years or more receive one month’s pay for each completed year of service, regardless of age. My question is: shouldn’t this enhanced scheme ‘mirror’ the statutory scheme, specifically the age provisions. As my company’s scheme does not take into account the age of the employee, could I argue the point on the grounds of age discrimination?

To claim age discrimination, you would have to show that you had been treated less favourably on grounds of your age. In your case, all employees are given the same formula for calculating a redundancy payment whatever their age. You have not therefore been treated less favourably than younger workers, but in the same way.

Statutory redundancy payments do have different formulae depending on age. Enhanced schemes that mirror the statutory formulae are likely to be justifiable on objective grounds (which defeats a claim for age discrimination). This does not, however, oblige your employer to offer larger payments to older workers.

 





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