Rising Age Discrimination Payouts: Speaking Up Against Workplace Ageism

Last year, the average age discrimination payouts in successful claims rose by nearly £90,000 compared to the previous year. Below, we analyse the data to understand what happened. We then provide examples of age discrimination in the workplace and discuss how those affected can seek justice.

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Age Discrimination Payouts Soar Despite Fewer Claims

According to the Ministry of Justice (MoJ), in 2023/24, successful age discrimination claims were awarded an average of £103,000. This rose by £89,000 from the previous year and constitutes a significant 624% increase. Since at least 2007/08, this represents the highest average compensation payout.

Interestingly, though, the number of successful claims involving ageism in the workplace hasn’t increased. From 2022/23 to 2023/24, this figure fell from 16 cases to 12, with the majority being settled outside of court. Nevertheless, due to some high-profile, senior individuals winning their cases, age discrimination payouts have soared dramatically. 

Understanding Ageism in the Workplace

Discrimination in the workplace arising because of age is a significant issue that can affect employees at all career stages. Despite legal protections under the Equality Act 2010 (EqA 2010), the MoJ data shows that ageism is still prevalent.

How Common Is Age Discrimination in the UK?

While there may have only been 12 successful claims involving ageism last year, it’s still one of the most frequently reported forms of workplace misconduct. Ciphr, a provider of HR solutions for UK-based organisations, recently conducted research on the topic. Its study found that nearly 20% of adults in the UK believed they were discriminated against during a job application or while at work because of their age.

Moreover, the Centre for Ageing Better, a UK organisation focused on improving the quality of life for older adults, uncovered “unfounded stereotypes” among those it surveyed. Its ‘Age Without Limits’ campaign revealed that almost a quarter of individuals believe “it does not make business sense to employ someone over 50 because they will be a slow worker who will not be able to adapt.”

How to Identify Workplace Ageism

With ageism still being a common issue in the workplace, it’s essential that employers and employees can identify it—only then will it be possible to stamp it out. Unfortunately, such misconduct isn’t always the most obvious to spot. That being said, some examples of age discrimination in the workplace include:

  • Recruitment Bias – Job adverts using phrases like “young and dynamic team” or requiring “recent graduates” may indicate an age preference.
  • Promotion and Training Barriers – Older employees may be passed over for promotions or development opportunities, with the assumption that they’re nearing retirement.
  • Workplace Culture and Comments – Ageist jokes and dismissive attitudes towards older colleagues create a discriminatory work environment.

Employers must ensure that all hiring, training, and promotion decisions are based on skills and experience rather than age. Under the EqA 2010, direct and indirect age discrimination is illegal, and businesses must justify policies that disadvantage older workers. If they can’t, and they’re taken to court, they could face age discrimination payouts.

Can You Be Made Redundant Because of Your Age?

It may be that a company is restructuring and disproportionately selects older employees for redundancy, assuming they’re more expensive. Alternatively, the business may want to push them out in order to create a younger workforce.

Whatever the case, companies cannot make someone redundant simply because of their age. Under the EqA 2010, employers must follow fair redundancy procedures. This includes using objective criteria (like performance and skills), offering suitable alternative roles, and conducting fair consultations.

Should they fail to do so, those affected could take legal action through an Employment Tribunal. With last year’s age discrimination payouts averaging over £100,000, this will likely be a situation employers will want to avoid.

How to Deal with Ageism in the Workplace

If an individual believes they’re being discriminated against because of their age, various measures exist to address the issue. The first step in dealing with age discrimination should ideally be informal. If comfortable doing so, consider approaching the person responsible or a supervisor. By addressing the issue this way, those affected may be able to find an immediate resolution without the need to escalate further.

However, if an individual’s concerns aren’t addressed adequately via informal measures, they may need to follow their company’s formal grievance procedure. Most businesses have a set way of handling such complaints. Once a grievance has been submitted, the employer should arrange a meeting to discuss the complaint, thoroughly investigate the issue, and provide a response in line with the Acas Code of Practice on Disciplinary and Grievance Procedures.

Should the individual remain unsatisfied with the outcome, they could take their problem to the Advisory, Conciliation, and Arbitration Service (Acas), which offers early conciliation to help settle the dispute outside of court. Not only is this service free, but it’s also a requirement before an individual can pursue legal action.

As a last resort, the individual could file an Employment Tribunal claim, provided that they satisfy specific eligibility criteria. Individuals who succeed with their claim could receive age discrimination payouts, comprising compensation for losses incurred, including loss of earnings, injury to feelings, and potentially aggravated damages.

What is the Time Limit for an Age Discrimination Claim?

In addition to meeting the eligibility criteria, individuals must also adhere to strict time limits when making an age discrimination claim. In general, these claims must be filed within three months less one day of the alleged discriminatory act.

It’s important to stress that the time limit is very strict. Employment Tribunals won’t usually accept claims filed after the three-month period. They have the discretion to extend this deadline if they consider it ‘just and equitable’ to do so, but such extensions aren’t guaranteed. Therefore, it’s crucial to act quickly once ageism has occurred.

If you’re unsure whether you meet the eligibility criteria or want help filing a claim, it’s best to seek legal advice. Redmans Solicitors, employment law specialists, can assess your case, explore potential claims, and advise on possible age discrimination payouts if your claim succeeds.

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