Former equity partner forced to retire at 63 wins discrimination case

An Employment Tribunal has ruled that Walker Morris LLP unlawfully discriminated against a senior partner by forcing him to retire at the age of 63, pursuant to the firm’s mandatory retirement policy.

Background

The Claimant, Martin Scott, had worked for Walker Morris LLP for many years as a partner and head of the firm’s construction and engineering department.

In 2018, the firm implemented a new retirement policy in which any member aged over 60 had to reapply if they wanted to be kept on and would have to show that their future contribution would be of an ‘exceptional nature.’ This policy was on the basis of ‘intergenerational fairness’ and the need to free up equity to give progression opportunities to younger partners.

Whilst the Claimant was successful in his first application in 2020, the firm refused a subsequent request in 2023, and he was therefore forced to retire at 63.

Judgment

In its Judgment, the Tribunal panel unanimously concluded that the firm had breached the Equality Act 2010. The panel commented that the refusal to grant the renewed application amounted to less favourable treatment because of age and agreed that had the Claimant been aged under 60 he would not have been subjected to the same treatment.

While direct discrimination on the grounds of age can be justified in some circumstances, Walker Morris had failed to produce evidence to show its restrictive approach was reasonably necessary and the Tribunal concluded there were several less discriminatory alternatives available.

The Tribunal determined that Walker Morris’s approach relied on “discriminatory assumptions about and attitudes towards older partners,” specifically highlighting that assumptions about declining energy and performance among senior staff were unsupported by any objective evidence.

It went on to decide that the policy was not a proportionate means of achieving a legitimate aim. There was no evidence that the firm needed to free up equity in order to give progression opportunities to younger partners and the firm was unable to identify anyone who had left due to a lack of progression.

The Tribunal took into consideration that many employers have now abolished retirement ages entirely and those who retain them tend to have higher retirement ages. It considered Walker Morris was ‘bucking the trend’ by insisting on a presumptive retirement age of 60 and making extensions beyond 60 subject to exceptional performance.

Comment

The ruling is likely to have significant implications for employers with mandatory retirement policies. This case should serve as a warning to employers to avoid trying to cut costs or free up the promotion ladder by using such policies unless there is strong and objective evidence to justify them.

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