A tribunal in Galt and others v National Starch and Chemical Limited has held that differences in an enhanced redundancy scheme which benefited older employees (three weeks pay for each year of service under 40; four weeks pay for each year over 40) was found to be discriminatory on grounds of age. Whilst the company’s aim behind the scheme was legitimate, the means were not proportionate to achieving that aim.

It seems likely that this case will be appealed particularly as the scheme reflects the statutory redundancy scheme’s intention to reflect the market disadvantage for older employees. Meanwhile, employers would be wise to ensure that any age differentials in their redundancy schemes are capable of clear objective justification.