Redundancy Procedure – enhance your knowledge with these tips: Q5

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Question 5: Last in, first out – what’s the problem?

Answer:
Since introduction of the Employment Equality (Age) Regulations 2006 'last in, first out' (LIFO) is likely to put younger employees at a disadvantage. LIFO can still be used for selecting for redundancy but employers must be able to justify this choice was made objectively by using several criteria.

You may think it a simple matter to look at length of service, and depending on your needs, select those with the least service. Alternatively, believing you can cut higher salary costs, select those with the most service.

Both actions can result in age discrimination claims.  For example: In a recent case involving Rolls Royce, the High Court ruled that LIFO (Last In First Out) used as the sole criterion for redundancy selection was unlawful age discrimination.  This was because it favoured older workers as they were more likely to have longer service.

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