Redundancy Pay Age Discrimination
When it comes to redundancy payments, if you are offered less redundancy pay than someone else in the company who is also being made redundant because you are younger than them, or because you have not worked at the company for as long as they have, it can be classed as age discrimination.
There are two forms of redundancy pay:
- Statutory redundancy pay, which is set out in the law and applies to employees with more than two year’s continuous service
- Contractual redundancy pay, which you may be entitled to under your contract of employment.
However, the Equality Act of 2010 states that it is NOT unlawful age discrimination when an employer makes statutory redundancy payments, or, makes higher contractual redundancy payments which are based on age and length of service. This is as long as they are based on the same statutory redundancy pay scheme.