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Giving 60-year-old option to retire rather than being dismissed was not discriminatory

The EAT agree with the ET that there was no age discrimination where a long serving employee aged 60, who was judged to be incapable, was given the option to retire to preserve his dignity, rather than be dismissed.

In Kelly v PGA European Tour, Kelly, aged 60, was the PGA’s Group Marketing Director with 28 years’ service.  The new CEO, Pelley, formed the view, reinforced by negative feedback from the board and senior managers, that K was not performing well and should be dismissed. P met with K to see if terms could be agreed for his departure. P said he would like K to consider retiring at the end of the year and continue as a consultant, thereby offering a respectful way to leave the business. Terms could not be agreed, and K was dismissed, without any procedure being followed. P claimed unfair dismissal (which the PGA conceded) and age discrimination, i.e. P had no place for a 60-year-old in the new PGA structure. The EAT agreed with the ET that the reason for K’s dismissal was not age. P dismissed K because he believed K was incapable of fulfilling the role required by the PGA. The reference to retirement was for presentation only, so as to handle K’s departure respectfully and preserve K’s dignity.


This update provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Click on the links to access full details. If no link is provided, contact us for more information.  Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.

 

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