Caps on redundancy payments disproportionately affecting older workers are not Age Discrimination

Kraft Foods UK Ltd v. Hastie [2010] UKEAT 0024_10_0607

www.workrep.co.uk

    Helping You     About     Links     Contact     Site Info     HOME

16/07/2010

The EAT has decided that limits on Redundancy Payments affecting older workers does not constitute age discrimination in Kraft Foods v Hastie.

Kraft Foods capped its contractual redundancy compensation scheme, thus preventing employees from receiving a redundancy payment in excess of their wages until their retirement.

Notwithstanding that this cap had a disproportionate effect on employees who were close to retirement the tribunal decided that this was not unlawful indirect age discrimination contrary to the Employment Equality (Age) Regulations 2006.

The EAT reasoned that such a cap was justified as being a proportionate means of achieving a legitimate end and that the fairness of such a scheme should be considered in light of its goal of protecting former employees' incomes after redundancy.

The decision in Loxley v BAE Systems Land Systems Ltd [2008] was applied whereby the EAT held that a company was entitled to formulate rules that saved giving windfalls to employees in situations of redundancy.

The transcript of this case follows:-   Kraft Foods UK Ltd v. Hastie [2010]





Abroad      Agency      Appeals (ET)      Closed_Procedure      Compensation      Constuctive_Dismissal      Contract      Costs      Discrimination      Age Discrimination      Disability Discrimination      Race Discrimination      Religious Discrimination      Sex Discrimination      Sexual Orientation Discrimination      Discipline      Dispute_Resolution      Employer_Liability      Employment Status      Equal Pay      Harassment and Bullying At Work      Tribunal Hearing      Holidays and Holiday Pay      Employer Negotiations      Part-Time      Pay      Pensions      Palestine      Employment Tribunal Procedure      Restricted_Reporting_Orders      Sanctions      Sickness      Tribunal Settlement and Compromise Agreements      Time_Limits      Tupe      Unfair and Wrongful Dismissal      Union      Victimisation      Whistleblowing     


Some recent employment cases:-
2010
Employees must be informed of changes to collective agreement terms - Worrall v Wilmott Dixon Partnership [2010] EAT UKEAT/0521/09/DM
An employer can not plead its own irrationality in seeking to amend a compromise agreement - Gibb v Maidstone & Tunbridge Wells NHS Trust [2010] EWCA Civ 678
Time limits may be extended following wrong information from an employer (but not an adviser) - Northamptonshire County Council v Entwhistle [2010] UKEAT/0540/09/ZT
Even after the Unite decision unions must continue to careful with TULRCA compliance - British Airways Plc v Unite the Union [2010] EWCA Civ 669
A disability discrimination claim under the DDA must be for actual not perceived disability - Aitken v. The Commissioner of Police of The Metropolis [2010] UKEAT 0226_09_2106
A GP's opinion on depression is valid in an employment tribunal - J v DLA Piper UK LLP [2010] UKEAT 0263_09_1506
University and College Union (UCU)backs antisemite who incited violence against jews
Retirement and re-employment is a reasonable adjustment - Chief Constable of South Yorkshire Police v. Jelic [2010] UKEAT 0491_09_2904
Histadrut condemns violence, describes extent of cooperation with palestinian trade union Palestinian General Federation of Trade Unions (PGFTU)
Where an employer is contemplating disciplinary action the thoroughness of the investigation needs to reflect the seriousness of the consequences to a worker - Salford Royal NHS Foundation Trust v Roldan [2010] EWCA Civ 522
Damages are not limited to the term of the breached fixed term contract (but reflect the total loss caused) - Edwards v Chesterfield Royal Hospital NHS Foundation Trust [2010] EWCA Civ 571
The disclosing of without prejudice communications - Woodward v Santander [2010] UKEAT/0250/09/ZT
Criterion for awarding uplifts under the Dispute Resolution Procedures - Lawless v Print Plus [2010] UKEAT/0333/09/JOJ
A local council is a single establishment thus allowing white collar workers to use manual workers as comparators - City of Edinburgh v Wilkinson & ors [2010] UKEATS/0002/09/BI
A compromise agreement can be valid even though the claimant does not understand it - McWilliam & Others v Glasgow City Council
When using the closed procedure for national security purposes the claimant must still be provided with the gist of the employer's case -
Home Office v Tariq [2010] EWCA Civ 462 An employer can not repair a fundamental breach of contract. It is up to the employee whether to resign and claim constructive unfair dismissal. - Buckland v Bournemouth University Higher Education Corp [2010] EWCA Civ 121
A worker can not claim constructive dismissal if he is in breach of the duty of trust and confidence - Bateman & Ors v. Asda Stores Ltd [2010] UKEAT 0221_09_1102
A worker can not claim constructive dismissal if he is in breach of the duty of trust and confidence - Aberdeen City Council v McNeill [2009] UKEAT 0037_08_1011
BA dress code forbidding the open display of faith symbols was not discriminatory - Eweida v British Airways Plc [2010] EWCA Civ 80
When deciding whether to allow an amendment the lateness of the application is only one factor to be taken into account by the employment judge - Baker v The Commissioner of Police of The Metropolis [2010] UKEAT 0201_09_0502
National courts should should strike down discriminatory legislation - Seda Kücükdeveci v Swedex GmbH & Co. KG [2010] ECJCase C-555/07
Judges restrict employers' use of the illegality defence against employee unfair dismissal claims - SAN LING CHINESE MEDICINE CENTRE v LIAN WEI JI - [2010] EAT UKEAT/0370/09/ZT
There is a right to legal representation at a disciplinary which might result in the loss of the right to practise a profession - G, R (on the application of) v X School & Ors [2010] EWCA Civ 1
Cabin crew spending 5% of their time in the UK were considered to have worked partly at an establishment in Great Britain. - BA v Mak EAT [2010] UKEAT/0055/09/SM
The 'genuine occupational requirement' rule may apply to a maximum age for employment - Wolf v Stadt Frankfurt am Main [2010] Case C-229/08 ECJ
Different dress codes do not necessarily amount to sex discrimination - Dansie v. The Commissioner of Police for The Metropolis [2009] UKEAT
Certain conditions must exist for the obligation to carry out a risk assessment for a pregnant worker to arise - ONeill v. Buckinghamshire County Council [2010] UKEAT

2009
An employment tribunal may decide if a compromise decision is unenforcable - Industrious Ltd v Horizon Recruitment Ltd & Anor [2009] UKEAT
Registrar claiming right to refuse to officiate at civil weddings loses religious discrimination case - Ladele v London Borough of Islington [2009] EWCA Civ 1357
A philosophical belief based on science is protected by the Employment Equality (Religion or Belief) Regulations 2003 - Grainger Plc v Nicholson [2009] UKEAT/0219/09/ZT
Christian counsellor who would not help same sex couples was not discriminated against - McFarlane v Relate Avon Ltd [2009] UKEAT 0106_09_3011
Under TUPE the obligation to inform always applies, even when no measures are contemplated relating to the transfer - Cable Realisations Ltd v GMB Northern [2009] UKEAT
The Court of Appeal rules on Harassment and 'Oppressive and Unacceptable' behaviour
Veakins v Kier Islington Ltd [2009] EWCA Civ 1288
For s4A(3) of the DDA to apply the employer must have known (or ought to have known) that the employee was disabled and that the disability would affect him in the manner described in section 4A(1) - DWP v Alam [2009] UKEAT 0242_09_0911
A discrimination case may not proceed on the mere possibility that evidence might emerge during cross examination - ABN Amro Management Services v Hogben [2009] UKEAT 0266_09_0111
In cases of discriminatory dismissal tribunals may reduce compensation if the worker would in any event have been dismissed - Chagger v Abbey National Plc & Anor [2009] EWCA Civ 1202
If you have a problem at work over harassment, disability, sex, age, race discrimination or bullying or are seeking compensation or reinstatement for unfair or constructive dismissal then contact workrep for an evaluation of your case. We can also advise you on equal pay, TUPE or employment status. Often an employee will come to us over a breach of contract by their employer or for issues concerning whistleblowing. If your employer has made you redundant you might in fact have been unfairly dismissed or wrongfully dismissed. If you have any other employment issues don't hesitate to contact WorkRep.
You do not need to accept being discriminated against harassed or victimised at work. If you are suffering from bullying victimisation or discrimination at work you need to contact WorkRep early on. Whatever your employment problem is, even if you have failed in your tribunal case and there is now a costs application against you we will try to help. click for further information about problems at work
Disclaimer: articles and information published by WorkRep.co.uk are for general information purposes only.  Please read the site info before using this website