Age Discrimination at Work and What the PWC £150k Settlement Means

In a recent high-profile case, supported by the Equality Commission for Northern Ireland, PwC has agreed to pay £150,000 to settle a claim involving alleged disability and age discrimination at work. The claim, brought by a senior employee in her 50s, centred on allegations that she had been treated less favourably than younger colleagues and sidelined within the business.

Although the matter concluded by way of settlement rather than a final employment tribunal judgment, the case has attracted national attention. It serves as a reminder that workplace age and disability discrimination can arise at any level of an organisation and can carry significant financial and reputational consequences.

If you believe you’ve suffered any form of discrimination at work, contact Redmans Solicitors without delay. Our team of employment specialists is here to help. Following a brief consultation, we can assess your case, provide the answers you’re looking for, and guide those eligible through the legal process.

To begin, simply:

• Call us directly on 020 3397 3603
• Request a callback via our online form

The Facts Behind the PwC Age Discrimination at Work Claim

Background to the Claim

The individual bringing the claim was a senior employee with substantial experience. Unfortunately, she alleged that she had been marginalised within the organisation and excluded from client-facing responsibilities over time.

Among other things, she reported that her responsibilities were reduced or reallocated, opportunities for progression were limited, and younger colleagues were favoured for advancement. She also claimed that her role was effectively diminished prior to her departure.

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The claim was pursued on the basis that these actions amounted to unlawful age discrimination at work, contrary to the Equality Act 2010. Rather than proceeding to a full merits hearing before the employment tribunal, though, PwC agreed to settle the case for £150,000. While settlement doesn’t constitute an admission of liability, the size of the payment reflects the potential exposure employers face when defending disability and age-related claims.

Is Age a Protected Characteristic?

One of the central issues in the above case was discrimination relating to age, which is expressly protected under the Equality Act 2010. The Act makes it unlawful to treat a person less favourably on the basis of age during recruitment, employment, dismissal, and other workplace arrangements. Notably, protection applies to individuals of all ages, not just older employees.

The legislation prohibits:

• Direct discrimination – treating someone less favourably because of age.
• Indirect discrimination – applying a provision, criterion or practice throughout the workplace that disadvantages a particular age group, unless it can be objectively justified.
• Harassment – unwanted conduct related to age that violates another’s dignity or creates an intimidating or hostile environment for them.
• Victimisation – subjecting someone to a detriment because they have raised concerns about age discrimination at work or assisted someone else who has.

Unlike most other protected characteristics, direct age discrimination can, in limited circumstances, be objectively justified if it represents a proportionate means of achieving a legitimate aim. However, tribunals interpret this defence narrowly.

Understanding Age Discrimination at Work Under UK Law

Claims involving age discrimination in the workplace are governed by the Equality Act 2010. This Act applies to all aspects of the employment relationship, including during recruitment and advertising, within the terms and conditions of employment, and when making promotion decisions. It also applies during performance management, redundancy selection, and dismissal.

To succeed in a claim, a claimant must establish facts from which a tribunal could conclude that discrimination has occurred. If that threshold is met, the burden shifts to the employer to provide a lawful explanation.

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Common risk areas that may result in an employer facing legal action include labelling an employee as “overqualified,” or saying they “lack energy.” Such issues may also arise if “younger talent” is prioritised in succession planning, assumptions are made about retirement intentions, or a redundancy criterion is linked to service length without sufficient justification.

Even informal decision-making processes can give rise to age discrimination at work if objective reasoning cannot be demonstrated.

Discrimination in the Workplace: The Wider Legal Framework

The PwC settlement highlights broader workplace discrimination issues. Under the Equality Act 2010, individuals are protected against discrimination based on nine protected characteristics. In addition to age, these characteristics include:

• Disability
• Gender reassignment
• Marriage and civil partnership
• Pregnancy and maternity
• Race
• Religion or belief
• Sex
• Sexual orientation

For example, disability discrimination can arise where an employer fails to make reasonable adjustments or treats an employee unfavourably because of something arising from disability. Elsewhere, an employer could be guilty of pregnancy discrimination if it terminates an employee’s contract upon learning of their pregnancy.

Notably, an organisation that fails to address age-related bias may also expose itself to risks related to other protected characteristics. As such, compliance requires consistent, organisation-wide standards.

Why the £150,000 Settlement Matters

While the £150,000 settlement above represents a significant win for the employee, it’s important to acknowledge the impacts from an employer’s perspective. Firstly, such cases can be costly for employers. Compensation for age discrimination at work is uncapped and may include loss of earnings (past and future), pension loss, and injury to feelings (assessed in line with Vento guidelines). It can also comprise aggravated damages or interest, depending on the circumstances.

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Where senior employees are involved, legal action can be particularly expensive. Future loss calculations alone can be substantial, and legal costs and management time can further increase exposure.

Additionally, high-profile allegations of age discrimination in the workplace can damage brand reputation and undermine public trust. Media coverage often scrutinises organisational culture as well as legal arguments. The bigger the story and public reaction, the more significant the subsequent potential damage could be.

Finally, many claims can arise not from overt hostility, but from patterns of exclusion or unconscious bias. A lack of transparency in promotion or succession planning may increase the likelihood of disputes. And should these issues go unresolved in wider workplace policy and decision-making, repeated legal action could result.

How Employers Can Reduce the Risk of Age Discrimination at Work

Preventing age discrimination in the workplace requires proactive and demonstrable compliance measures.

1. Objective Recruitment Practices

Job advertisements and selection criteria should be skills-based and age-neutral. Language implying a preference for “young” or “recent graduate” candidates may create legal risk unless objectively justified.

2. Transparent Promotion and Project Allocation

Promotion decisions should be supported by clear, documented criteria. Informal or opaque processes increase the risk of challenge.

3. Evidence-Based Workforce Planning

Succession planning and restructuring exercises must be supported by legitimate business aims capable of objective justification.

4. Management Training

Training on equality law and unconscious bias can reduce the likelihood of decisions being influenced by stereotypical assumptions about age.

5. Effective Grievance Procedures

Complaints relating to age discrimination at work should be investigated thoroughly and impartially. Failure to follow the Acas Code of Practice on Disciplinary and Grievance Procedures may increase compensation awards.

What Individuals Can Do if They Experience Age Discrimination at Work

Where concerns arise regarding workplace age discrimination, swift, structured action is important.

Record Evidence

Contemporaneous notes, emails and performance documentation may become critical evidence in supporting one’s case. Because of this, it’s recommended to gather as much evidence as possible before taking action.

Use Internal Procedures

Once evidence has been gathered, it’s then advised to pursue internal channels. Raising concerns informally or through a formal grievance may resolve an issue quickly and without the need for litigation. Employers are expected to properly investigate such complaints, and formal grievances impose additional legal obligations on them.

Be Aware of Time Limits

Employment tribunal claims must generally be lodged within three months less one day of the discriminatory act. Early conciliation through ACAS, though, is a mandatory preliminary step. This free and independent process also offers another chance to resolve the matter informally.

Seek Specialist Advice

If all else fails, it may be time to pursue an employment tribunal claim. However, before doing so, obtaining specialist legal advice is recommended. An employment lawyer can assess whether conduct meets the legal definition of age discrimination at work, advise on prospects of success and explore potential settlement options.

Key Takeaways From the PwC Age Discrimination at Work Case

The PwC settlement reinforces several important principles:

• Age is a fully protected characteristic under UK law.
• Senior employees are equally protected from unlawful treatment.
• Exclusion from opportunities can amount to actionable discrimination.
• Financial settlements in age discrimination in the workplace claims can be significant.

Organisations that rely on informal culture or unstructured decision-making processes face increased exposure.

Get Help with Redmans

If age discrimination at work has affected your employment, prompt legal advice is essential. Redmans Solicitors advise on discrimination claims under the Equality Act 2010 and can assess potential next steps.

To begin your journey with us now, please:

• Give us a call directly on 020 3397 3603
• Fill out our online form for a callback