Cap That. Disability Discrimination To Limit Voluntary Exit Payments To Reflect Pension

It used to be common to place a cap on redundancy compensation for employees approaching normal retirement age, on the basis that this prevented employees from obtaining a "windfall" from their termination and that any age discrimination was justified. That argument became harder to sustain with the removal of the default retirement age. The same issue has now arisen in the context of employees whose voluntary exit payments were capped not because of their age, but because they were entitled to an immediate disability related pension. The EAT decision in Chief Constable of Gwent Police v Parsons confirms that this was unfavourable treatment arising from a disability and not justified.