This case looked at the knotty issue of whether a discriminatory decision based on cost can be justified.
As part of an NHS re-organisation, Mr Woodcock's role as Chief Executive was made redundant. But he continued to work for the Trust while other suitable jobs were considered.
Mr Woodcock was 48 at the time. If he were still employed by the Trust at 50 then he would be entitled to an enhanced early retirement package which could have cost the NHS an extra £500,000. So the Trust served redundancy notice on Mr Woodcock which meant that he would be dismissed before reaching 50. He claimed unfair dismissal and age discrimination.
The employment tribunal and Employment Appeal Tribunal found for the Trust. It's the age discrimination point that provides real interest. The timing of Mr Woodcock's dismissal was potentially discriminatory but justified, it was held. It was legitimate for the Trust to have tried to avoid additional costs and, anyway, had notice not been served when it was then Mr Woodcock would have received a windfall. The Trust's primary aim was to achieve a redundancy whilst avoiding unnecessary cost and a windfall benefit, which meant that its actions were not purely cost-related.
Mr Woodcock appealed but lost at the Court of Appeal. The dismissal for redundancy was a legitimate aim. While timing a redundancy purely to save costs cannot by itself be justified (it's not a legitimate aim), this case was about more than just cost. The circumstances of the dismissal were genuine.
An important reminder that discrimination based on cost alone might land employers in hot water. Other legitimate aims need to play a part.
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