Employers looking to cut costs in the wake of the credit crunch could face claims for indirect age discrimination if they implement ‘last in, first out’ redundancy policies that mean that younger workers are more likely to lose their jobs, said emw law, the commercial law firm.
 
Jon Taylor, head of employment at emw law, said: “Redundancy is the number one employment law issue for employers right now. Companies right across the board, not just in those sectors hardest hit by the credit crunch, like financial services, are looking for ways to trim the fat.
 
“Before age discrimination legislation came into force in 2006, uncompromising ‘last in, first out’ redundancy regimes were legally perfectly acceptable. In fact, they were often seen as the easiest way to avoid unfair dismissal claims arising out of the implementation of complex selection matrices, often including criteria such as attendance records which could discriminate against women and the disabled.”
 
However, Taylor added that now, where the age profile of the workforce means that the majority of those selected for redundancy on this basis are younger workers, employers could expose themselves to the risk of claims.