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ARTICLE · 20 OCTOBER 2008

Last In, First Out Redundancy Policy

Traditionally, a “last in, first out” (LIFO) criterion for redundancies has been regarded as the fairest and most objective method of worker selection.

United KingdomEmployment and HR

Traditionally, a "last in, first out" (LIFO) criterion for redundancies has been regarded as the fairest and most objective method of worker selection. However, with the introduction of the Employment Equality (Age) Regulations 2006, the practice of using the LIFO principle may not be as straightforward as it once was.

LIFO has a tendency to work against younger workers, as they are often the ones likely to have served with the company for the shortest time. While this is an unintended consequence of the policy, employees who find themselves made redundant due to LIFO selection may be able to make claim against their employer for indirect discrimination on grounds of age.

Whether such a claim would prove successful is by no means clear-cut. Under the regulations, discrimination on the grounds of age is unlawful unless there is an objective justification for it: that is, it is only permissible where an employer can show that it is a proportionate means of achieving

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