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ARTICLE · 31 MAY 2023

Damages Increased in Retirement Age Discrimination Case

Recent case highlights that an employer cannot impose a retirement age or treat an employee less favourably on the basis of their age.

AustraliaEmployment and HR
Tavishi Arora
Tavishi Arora

Did you know that compulsory retirement is unlawful in Australia? The Age Discrimination Act 2004 (Cth) makes it unlawful to discriminate on the basis of age in employment. This includes when making decisions about recruitment, promotions and termination of employment. Accordingly, an employer cannot impose a retirement age or treat an employee less favourably on the basis of their age.

In a recent appeal case before the Federal Court of Australia ("FCA") an employee who was awarded $20,000 after suffering age discrimination has had their compensation increased to $90,000 with the FCA describing the initial award of $20,000 as "manifestly inadequate". The FCA has also signalled a possible additional payment of $142,000 for economic loss.

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