Council unfairly dismissed worker to avoid pension costs

Bristol Employment Tribunal has found that Tewkesbury Borough Council dismissed worker Christopher Walsh unfairly on the grounds of age discrimination, after it dismissed him months before his fiftieth birthday.

The Employment Tribunal found the Council did not want to incur £90,000 in pension costs once Mr Walsh turned 50 in December 2009. The Council therefore refused to extend his employment under transitional provisions.

Mr Walsh was initially told he faced redundancy from his position in March 2010 when five leisure centres which he managed were to be transferred to external control. However, his job looked less secure earlier than that in September 2009 when a colleague was appointed to handle the transfer process between the Council and the company taking over control of the five centres.

However, Mr Walsh provided support to the colleague because of his expertise in the area. It was suggested by his legal team in the Tribunal that he should have been retained until the transfer was completed because of his expertise in this area.

However, in a meeting between the Council’s interim chief executive and a HR consultant for the transfer to discuss the possibility of an extension of Mr Walsh’s employment, the HR consultant asked for a calculation of Mr Walsh’s pension.

Mr Walsh told the Employment Tribunal that he was then told his dismissal was because the Council did not want to incur the cost of his pension.

The Council argued that he was dismissed because his role was redundant but the Tribunal found with Mr Walsh had been discriminated against because of his age and that he had been unfairly dismissed. He is claiming £250,000 in compensation.

Although not binding, the Employment Tribunal’s decision should be heeded by the public sector in this time of collective redundancy necessitated by the Coalition Government’s far-reaching austerity cuts. The decision allows genuine redundancies of employees if their job no longer exists; however, it warns that the redundancy should not be manipulated to provide a benefit for the employer, such as moving it forward by a few months to avoid incurring pension costs.

Job Justice works with recommended employment solicitors throughout the UK. If you are facing redundancy, or if you want to instigate redundancies, and you require legal advice, call free today on 0800 533 5799 and let us find the right solicitor for you.