The Employment Appeal Tribunal has held that a voluntary redundancy scheme that provided different severance payments for two different age groups of employees was not age discriminatory because the differential treatment was justified.
The Employment Appeal Tribunal has affirmed the employment tribunal's decision that an employee, who was dismissed because of the employer's downturn in work and consequent reduction in the hours to be worked, was dismissed by reason of redundancy, even though there was no reduction in the employees required.
In Kraft Foods UK Ltd v Hastie EAT/0024/10, the EAT held that a contractual redundancy scheme that capped payments at the total amount of earnings that the employee would have received prior to retirement was justified as a proportionate means of preventing redundant employees from receiving a windfall.