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ARTICLE · 09 OCTOBER 2008

Age Discrimination In Enhanced Redundancy Calculations

In Macculloch v Imperial Chemical Industries plc [2008] Ms MacCulloch (M) was made redundant by Imperial Chemicals Industry plc (ICI).

United KingdomEmployment and HR
Andrea Nicholls
Andrea Nicholls

In Macculloch v Imperial Chemical Industries plc [2008] Ms MacCulloch (M) was made redundant by Imperial Chemicals Industry plc (ICI). She was paid an enhanced redundancy payment, which was calculated on age and length of service. The scheme gave significantly higher payments to older workers. M was nearly 37 years old and thus received only 55% of her gross annual salary compared to up to 175% for her older coworkers.

FACTS

M later claimed that the enhanced redundancy pay was directly or indirectly discriminatory on the grounds of her age and that had she been older she would have had the opportunity of having longer service. The ET accepted that the calculation was, on the face of it, directly and indirectly discriminatory. However, it upheld ICI's defence that the calculation was objectively justified. Therefore M's claims on both direct and indirect discrimination failed.

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