Age discrimination continues to be a pressing workplace issue, with the average payout for such claims surpassing £100k last year. For employers, this means it’s more important than ever to ensure they effectively manage ageism in the workplace and associated claims. Below, we discuss the recent rise in Employment Tribunal payouts, answer “What is ageism?” and explore how employers can tackle the problem.
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Average Payouts for Age Discrimination Claims Reach £103k
Compensation awarded for age discrimination claims has risen sharply over the past year. According to the Ministry of Justice, in 2023/24, the average Tribunal payout for successful claims was £103,000. This is a significant increase compared to the previous year, when the average payout was just £14,000. The dramatic rise has largely been attributed to some high-profile cases involving senior individuals.
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Curiously, though, the number of successful claims associated with ageism actually fell over the same period. Decreasing by four cases to just 12, the majority were settled outside of court.
That said, even if the number of claims isn’t growing substantially, the financial consequences can be severe. Therefore, it should be an employer’s priority to stamp out ageism in the workplace and handle any incidents with care.
What is Age-Based Discrimination in the Workplace?
Age-based discrimination occurs when an employee or job applicant is mistreated simply because of their age. Such conduct can take many forms, leading to individuals being overlooked for a job opportunity or forced out of employment.
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Is Age a Protected Characteristic?
Under the Equality Act 2010, individuals are protected from discrimination based on their protected characteristics, which includes age. Age discrimination can affect individuals at various career stages, impacting both younger and older employees, and manifest in various ways, including:
- Direct Discrimination – Where someone is treated less favourably specifically because of their age.
- Indirect Discrimination – When a company policy or rule, despite applying to everyone, disproportionately affects people of a certain age.
If an individual faces unlawful discrimination during recruitment or while at work, they could file an Employment Tribunal claim. Should they be successful, their employer could be obligated to pay out compensation which, as established above, can be substantial.
Examples of Age Discrimination
Workplace ageism can happen at any stage of employment, from recruitment to retirement, and may be present during:
- The Recruitment Process – Where job advertisements include phrases such as ‘young, dynamic team’, which may discourage older applicants and indicate a preference for younger candidates.
- Promotions – Where an employer passes over an older employee, assuming they’re close to retirement or unable to adapt to new technologies.
- Training Opportunities – Where an employer neglects the training needs of older staff, believing they won’t benefit from new skills due to their age.
- Redundancies – Where older workers are disproportionately selected without objective justification, and factors like performance or skills aren’t considered.
- Day-to-Day Life – Where ageist jokes, comments, and attitudes are widespread, creating an environment where colleagues of a specific age feel excluded and undervalued.
Employers must ensure that, at all stages, employment decisions are based on objective criteria like skills and experience rather than age stereotypes. Failure to do so could land them in court, where they might face costly Tribunal claims.
Preventing Age Discrimination in the Workplace: Key Steps for Employers
Even if an employer doesn’t engage in discrimination itself, it could be vicariously liable for the actions of its employees if discrimination occurs in the course of employment and it failed to take reasonable steps to prevent it. It’s, therefore, essential they understand how to lower instances of age discrimination at work.
A good starting point is to deal with recruitment. Associated practices should be age-inclusive, from job adverts that remain neutral to interviews that assess the qualifications and capabilities required for a role.
What’s more, equal opportunities for training and development must be open to employees of all ages. Employers should provide the entire workforce with the chance for professional growth and demonstrate their belief that all workers can benefit.
Promotions are another key area where workers of a particular age can face discrimination, so employers must pay particular attention here, too. Clear, objective criteria for performance reviews and promotions can help overcome any underlying bias that may influence decisions to overlook an older worker.
The same can be said during redundancies, where employers must use criteria focusing on performance, skills, or future business needs rather than an individual’s age. This can help employers mitigate the risk of age-based discrimination and ensure a fair process for all.
Finally, to foster a culture of inclusivity, employers must actively discourage age-related jokes or comments that can lead to exclusion. Training about respect and acceptable behaviour can help prevent ageist attitudes from taking root in the workplace.
By taking these steps, employers can create a fairer, more inclusive environment while protecting themselves from liability.
Handling Age Discrimination Complaints
Despite employers’ efforts to avoid ageism in the workplace, claims of age-based discrimination may still arise. In such circumstances, employers must take the matter seriously and follow a legally compliant process.
When an employee initially raises a complaint, their employer should respond promptly. Ignoring or dismissing it could lead to further legal consequences. However, if the matter is resolved swiftly, the employer will show commitment to creating a fair and respectful workplace.
Typically, companies have a grievance procedure for handling age discrimination complaints. This procedure should be followed, especially when investigating the incident and determining the outcome. The process should be fair, transparent, and in accordance with Acas guidance—while the latter may not be legally binding, Tribunals can take it into account when assessing fairness.
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To help prevent the matter from escalating to an Employment Tribunal, the employer should consider alternative dispute resolution options. These could include mediation or conciliation, which may be more cost-effective and help reduce stress.
After resolving the complaint, the employer must review what happened and determine what went wrong. They should consider whether changes need to be made and act accordingly. By learning from the situation, employers can improve their practices and ensure such incidents don’t happen again.
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