Claimant v London North Eastern Railway Limited
Outcome
Individual claims
The tribunal found the respondent's failure to pay IHSA benefits to claimants over 65 was capable of objective justification. The age cap at 65 pursued legitimate aims of inter-generational fairness, fair allocation of resources to those with greater need, and financial responsibility. The tribunal accepted that drivers over 65 had access to full occupational pension benefits (40% of final salary) and were approaching state pension age, reducing their need for financial support compared to younger workers. The means adopted (age cap at 65) were proportionate and reasonably necessary to achieve these aims.
The tribunal accepted that the IHSA provision (particularly the age cap at 65 in subparagraph b(iii)) put persons aged 65 and over at a particular disadvantage (no lump sum or continuing weekly payments). However, this was objectively justified on the same grounds as the direct discrimination claim: the respondent pursued legitimate aims of inter-generational fairness and responsible allocation of limited resources, and the age cap was a proportionate means of achieving those aims given that workers over 65 had access to full occupational pension benefits.
Facts
Four train drivers, all over 65 with over 40 years' service, were dismissed on ill-health grounds. Under the collectively-agreed Ill Health Severance Arrangements (IHSA), they received no financial support because of an age cap at 65, while two comparators aged 62 received payments. The claimants had access to full occupational pension benefits (40% of final salary) from age 60 and were approaching state pension age (66). They claimed direct and indirect age discrimination.
Decision
The tribunal dismissed all claims. The respondent successfully established objective justification: the age cap pursued legitimate aims of inter-generational fairness, fair allocation of limited resources to those with greater need, and financial responsibility. The tribunal found the cap at 65 was proportionate because claimants had access to substantial occupational pensions and were close to state pension age, reducing their need for financial support compared to younger workers without such income.
Practical note
An age cap on ill-health severance payments can be objectively justified where older workers have access to full occupational pension benefits, even where they are not yet entitled to state pension, provided the cap pursues legitimate aims of inter-generational fairness and is proportionate to those aims.
Legal authorities cited
Statutes
Case details
- Case number
- 2501510/2023
- Decision date
- 19 November 2025
- Hearing type
- full merits
- Hearing days
- 6
- Classification
- contested
Respondent
- Sector
- transport
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Driver
- Salary band
- £60,000–£80,000
- Service
- 40 years
Claimant representation
- Represented
- Yes
- Rep type
- barrister