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In "Kraft Foods UK Ltd v Hastie" the EAT confirmed, not for the first time, that the Employment Equality (Age) Regulations cannot be used to challenge differential payments awarded to employees of different ages or length of service when implementing a redundancy exercise.
In Kraft Foods UK Ltd v Hastie the EAT confirmed, not
for the first time, that the Employment Equality (Age) Regulations
cannot be used to challenge differential payments awarded to
employees of different ages or length of service when implementing
a redundancy exercise.
In this case, it was permissible for the employer to
'cap' sums awarded under a redundancy scheme so that no
employee could recover more than they would have done if they had
stayed at work until retirement age. The EAT concluded that
practice was direct age discrimination, but that it could be
justified as acceptable within the Regulations.
Point to Note –
The EAT stated that in such cases it is right for the
tribunal to look at the scheme as a whole and to see how it
operates overall, and that the tribunal should not focus solely on
the detrimental impact that one provision (in this case, the
'cap') has on the claimant.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
