Council Worker Loses Age Discrimination Claim Over £350K Pension

A council worker in Essex has had his age discrimination claim dismissed by an employment tribunal after being made redundant just three days before his 55th birthday, which prevented him from accessing a pension estimated at £350,000.

Lee Henley, 57, had worked for Thurrock Council for 35 years when restructuring plans led to his redundancy on July 22, 2024. Mr. Henley had anticipated finishing his employment after his 55th birthday, which would have entitled him to his full accrued pension and a redundancy payment. However, changes to the redundancy plans, implemented while he was on holiday, brought his termination date forward.

Mr. Henley began his employment at Thurrock Council in 1989. By 2022, he held the position of Head of Information Management. The council, however, was facing significant financial difficulties, with reported debts of up to £1.5 billion, prompting a recovery plan that necessitated substantial savings. In October 2023, PwC conducted an analysis of the council and recommended departmental changes. The Information Management department was slated for disbandment, with two redundancies planned to save approximately £109,000.

The authority anticipated 37 redundancies in total, with implementation scheduled between February and April 2024. Mr. Henley's estimated lump sum for early retirement, had he qualified, was £357,858.85. Employees made redundant at or after age 55 are entitled to their full pension immediately, whereas those made redundant before this age receive their pension at their normal retirement age, typically ten or more years later.

Initially, Mr. Henley discussed with Head of Service Sarah Hirt a plan to end his notice period on July 28, ensuring he would still be employed on his 55th birthday. This timeline was based on a 45-day consultation period. However, a subsequent meeting with monitoring officer and executive director of corporate services Daniel Fenwick, where Mr. Henley expressed a preference for redundancy over retaining his role, led to a shift in plans.

While Mr. Henley was on holiday in March 2024, believing his last day would be after his birthday, Mrs. Hirt and Mr. Fenwick met. They agreed to reduce the employee redundancy count to fewer than 100, which shortened the required consultation period from 45 days to 30 days. This change meant Mr. Henley's termination date would fall before his birthday.

Mr. Fenwick acknowledged the timing was "awkward" in an email to Mrs. Hirt, stating, "We don't want this to look contrived either way in terms of EDT [Effective Date of Termination]." Mrs. Hirt calculated the total cost, including the pension and redundancy payment, to be £401,603.

Upon his return from holiday, Mr. Henley was informed of the reduced 30-day consultation period. He emailed Mrs. Hirt on April 3, highlighting the "significant impact" of this change on his pension entitlement. He was informed that his pension access was not a valid reason to extend the consultation period.

Mr. Henley was signed off sick with stress and anxiety on April 17. He received his notice of dismissal and remained on sick leave until his employment concluded on July 22. He had appealed his redundancy, but the appeal was dismissed.

Employment Judge Bruce Gardiner stated that the decision to reduce the consultation period was not an act of age discrimination. The judge accepted that Mr. Fenwick was aware of the implications of Mr. Henley's approaching birthday and sought to avoid any appearance of manipulation. The reduction in consultation days was applied to all similar redundancy exercises at the time. The tribunal found no evidence that the decision was influenced by Mr. Henley's age, other than Mrs. Hirt's knowledge of it.

Judge Gardiner added that even if age discrimination had been found, the decision would have been justified, as Mr. Henley had no entitlement to an enhanced pension before age 55. The judge noted that providing the enhanced pension would have reduced funds available for frontline services by over £350,000.