In Odar v Baxter Deutschland GmbH, Baxter concluded a Social Plan with its work council concerning the amount of compensation to be paid on termination of employment. The compensation reduced for workers aged over 54 by taking into account the earliest date from which they could receive a state pension. The CJEU confirmed that it is a legitimate aim to prevent termination compensation being claimed by persons who are not seeking new employment but will receive a replacement income in the form of an occupational old-age pension, and that the calculation employed on the facts was appropriate. However, the effect of the compensation calculation was that termination payments to severely disabled workers were lower than those paid to non-disabled workers (because they were entitled to a state pension at a younger age). This was held to be discriminatory, having an excessive adverse effect on the legitimate interests of severely disabled workers and going beyond what was necessary to achieve social policy objectives.