The Employment Appeals Tribunal has held that enhanced redundancy payments for older workers could be justified.
What does this mean? Employers may be able to justify a policy of higher payments for older leavers if the reason for the policy is to provide older leavers, who experience extra problems after losing their jobs, with a proportionate financial cushion.
What should employers do? Employers should consider taking specific legal advice about any redundancy scheme they operate which differs from the statutory regime, particularly if it differentiates between employees on the grounds of one of the protected characteristics, such as age.
Lockwood v Department of Work and Pensions and Cabinet Office