Age Discrimination and Employee Benefits
by Jenny
In a recent employment tribunal case a tribunal has held that it is not less favourable treatment on the grounds of age when an employer provides private medical insurance as part of a benefits package for employees and the premiums were calculated with reference to age, gender and claims history. The company decided that employees could purchase benefits from a fund which was provided to them and was calculated as a percentage of their salary.
An employee brought a claim when she found out that her premium was higher than it would be for a younger person. The majority of the tribunal held that it was not discriminatory because the ‘treatment’ was the fact that the company had decided to provide a fund to allow employees to purchase benefits and the amount of the fund was not linked to age. The majority of the tribunal also held that the company had demonstrated that the provision of the benefits package was a proportionate means of achieving a legitimate aim.
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