Cases2501510/2023

Claimant v London North Eastern Railway Limited

19 November 2025Before Employment Judge LoyNewcastlein person

Outcome

Claimant fails

Individual claims

Direct Discrimination(age)failed

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.

Indirect Discrimination(age)failed

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

PulmanHeskettHastieWilliamsSeldon v Clarkson Wright & JakesR (Elias) v Secretary of State for Defence [2006] EWCA Civ 1293LockwoodOdarLoxley

Statutes

Railway Act 1993Pensions Act 2011Equality Act 2010 s.19Equality Act 2010 s.13

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