Age discrimination

jsa2001

Can someone complain about age discrimination about how a redundancy package is distributed between older and younger workers, even if the older workers are still getting more than the younger less timed served workers?

Example 200+employees 7million pound package distributed by either opting for 6months salary or £1300 per years service.

Changed to 4months salary or £1450 per years service because older workers claimed age discrimination.

vicshippers

I thought that regardless of years service, if two people do the same job then they should be offered the same deal (that's what is turning our Prison Service upside down at the minute).

pjcox2005

I believe basing a redundancy package on years of service isn't aged discrimination but more an reward for loyalty, experience etc and is perfectly acceptable.

I say not age discirmination as in theory someone of 25 (for example) could have more years service with the firm than that of someone aged 50.

vicshippers

It is classed as age discrimination though - that's why the entire Prison Service is being re-jigged.

p00hsticks

Given that the statutory redundancy payments defined by the government have a higher minimum for service over the age of forty than not over forty (one and a half weeks pay per years service over the age of forty compared to one week per year under the age of forty) I'd be surprised if it's illegal for a private company to offer a deal structured the same sort of way.

pjcox2005

Sorry Vicshippers but I'm going to have to disagree on this one as I understand the practice to be acceptable.

Per age concern website:

'The age regulations abolish the upper age limit for statutory redundancy payments‚ so employees aged 65 and over are now entitled to redundancy pay calculated in the same way as younger people.

Age and length of service are still used as a factor in calculating statutory redundancy pay (and compensation for unfair dismissal). You are entitled to:

• 1.5 weeks’ pay (currently capped at £330 per week) for each year of service in which you were aged 41 or over
• 1 week’s pay for each year you were under 41
• half a week’s pay for each year you were under 22
• covers up to a maximum 20 years service.

This means that older people continue to be paid at a higher rate than younger people‚ even though this appears to be discrimination on the grounds of age. The government has said it believes this difference in treatment is justified.’

Also from Direct.gov (although slightly different circumstances):

‘Service related benefits

Many employers use service related pay and benefits to motivate staff, reward loyalty and recognise experience. If your employer uses ‘length of service’ criteria to increase staff pay or benefits, they can continue to do so, as long as the period of service is not more than five years.

If your employer uses a period longer than five years they must be able to justify their decision with a business need, for example by providing information about recruitment and retention.’

So in both cases years of service have been used to differentiate both pay and redundancy pay’ so this practice isn't necessarily age discrimination (although granted that the company would have to justify it exceeds a certain period of time).

getmore4less

vicshippers wrote: »

It is classed as age discrimination though - that's why the entire Prison Service is being re-jigged.

got a link?

the details might make the PS changes unrelated.

Ewarwoowar2

jsa2001 wrote: »

Can someone complain about age discrimination about how a redundancy package is distributed between older and younger workers, even if the older workers are still getting more than the younger less timed served workers?

Example 200+employees 7million pound package distributed by either opting for 6months salary or £1300 per years service.

Changed to 4months salary or £1450 per years service because older workers claimed age discrimination.

The short answer is yes, you can complain.

What you describe is age discrimination. The question is whether your employer can justify that age discrimination e.g. is it a genuine reward for loyalty.