Is it illegal to use "Last in first out" when considering those at risk of redundancy

majorwally

I keep hearing experienced people being made redundant because companies think that LIFO is illegal, but I can't see anywhere that actually states this.

The UK.GOV site says it maybe illegal if only used on young people, but still uses experience in it's examples as a consideration not to select someone for redundancy.

notanewuser

majorwally wrote: »

I keep hearing experienced people being made redundant because companies think that LIFO is illegal, but I can't see anywhere that actually states this.

The UK.GOV site says it maybe illegal if only used on young people, but still uses experience in it's examples as a consideration not to select someone for redundancy.

LIFO is the sort of thing that could be the only criteria in a redundancy situation. Ie you wouldn't look at LIFO and sickness absence because LIFO is an absolute measure. Using LIFO on its own could well lead to a discrimination claim in a tribunal (age discrimination more likely).

Most firms use a set of criteria around different measures. Attendance, performance etc. things that impact the business. Experience may or may not be one of those things.

LittleVoice

Objectively, LIFO can be used as the business case is that these people are, generally, less expensive for the business to let go.

Sycorax

It isn't illegal to use it as a criteria, although is usually in terms of 'length of service'. It would only be considered illegal if it only impacted people of a partcular age group. The assumption being that the 'last in' are likely to be younger than other people in the pool.

It's the same logic as behind any other of the recognised discriminations, if the criteria only impacts a discrete pool of people who are covered by the Equality Act, then it's automatically unfair.

real1314

majorwally wrote: »

I keep hearing experienced people being made redundant because companies think that LIFO is illegal, but I can't see anywhere that actually states this.

The UK.GOV site says it maybe illegal if only used on young people, but still uses experience in it's examples as a consideration not to select someone for redundancy.

You appear to be suggesting that companies would all use LIFO if it wasn't "illegal", but that's not necessarily true.
Even if LIFO was proven to be completely legal under any circumstances, it wouldn't have to be the default aprroach.

And whilst those with shorter service may be cheaper to pay off, those with longer service may be on higher rates of pay, so a higher cost pay-off in the short term may save money in the long term. :cool: