Age Discrimination And Enhanced Redundancy Schemes

Background

Many employers operate enhanced redundancy schemes under which they agree to make payments in excess of the statutory redundancy entitlement. Such schemes may, for example, provide that statutory redundancy payments will be increased by an overall multiplier or that actual pay will be used in the calculation rather than the capped weekly pay under the statutory regime (currently £330 per week).

Despite the removal of the upper and lower age limits under the statutory scheme, statutory redundancy payments are still calculated on the basis of length of service and a multiplier linked to age bands. Whatever the basis for enhancing redundancy payments, most schemes similarly adopt calculations based on age and/or length of service. What then is the impact of the Employment Equality (Age) Regulations 2006 ("the Age Regulations") on this approach?