Selection for Redundancy - Back to the '70s?

It's not just inflation and banking crises that are making a comeback. Selection for redundancy on the basis of length of service – 'last in, first out' or 'LIFO' - might still be alive and well, albeit in a rather diluted form.

That appears to be the surprising view of the High Court, which held that matrix selection criteria at Rolls-Royce, which included points for length of service as well as performance, did not contravene the age discrimination legislation. That result suited the union, but we understand the employer is appealing the decision.

Since the age legislation came in, employers have been wary of using length of service to select for redundancy. However, unions have been very reluctant to abandon what are often long-standing agreements that usually have the support of the workforce. The Court has given a great deal of support to the unions' view.

Wragge & Co experts provide an analysis and actions to take.