Marvin OnumonuAverage compensation in age discrimination cases rose to £103,000 last year, up from £14,000, according to employment law firm, Fox & Partners.
This represents a 624% increase and is the highest average since records began in 2007/08, where it was just over £3,000.
The rise was partly due to high-value claims by senior professionals.
Notable cases include a former Citibank employee awarded £2.7m in 2020 and a senior executive at FTSE 250 company Vesuvius who received £3.2m after age-related remarks.
Fox & Partners highlighted that the number of age discrimination claims reaching employment tribunals has decreased, with only 12 cases awarded compensation in the past year compared to 16 the year before.
Ivor Adair, partner at Fox & Partners, said: “The average value of age discrimination awards has notably climbed in the past year – this should serve as a stark warning to employers.
“Increasing numbers of older workers believe their age puts them at a disadvantage in securing a new role and losses for senior executives who claim their lucrative careers have been cut short, can be significant.
“With an ageing population and a growing awareness of high-profile disputes, high value age discrimination claims could well become more frequent in the coming years.”
Adair added: “Succession planning and strategies dealing with the orderly replacement of board members, is often not well handled and can be a source of allegations of age discrimination.”
“Many partnerships still retain a mandatory retirement age, which is a real risk when not decided upon through consultation, or based on evidence or reasoned projections that can justify that retirement age.
“Those firms that develop a proper succession plan that addresses immediate, medium, and longer-term change but also contingencies, for sudden and unforeseen departures are far better placed to deal with the challenges of an aging workforce.”
He said: “Employers should review their workplace policies to ensure robust anti-discrimination measures are in place.
“This will contribute to an improved work environment – and reduce the risk of costly litigation for businesses.”
