The Memo: Law firm partner wins age discrimination claim

Martin Scott was a solicitor for 40 years and became partner at Leeds-based firm Walker Morris in 1992 before becoming an equity partner in 1997. In 2018, however, the firm introduced a new policy around retirement which meant that any member of the firm aged over 60 had to apply to be kept on. As part of this,such applicants had to demonstrate that they would make a valuable contribution to the firm of “an exceptional nature."Scott was granted an extension of three years in 2020 and continued his role as a partner in the firm’s construction department, though the policy meant that his equity was reduced by ten percent each year. A year into this period, the firm told Scott that even though he was performing well financially, the impact of this was undermined by poor behaviour and conduct. When he made his second application for an extension, it was refused on the basis that a succession plan had not been created. His behaviour was considered in these discussions, but nothing of that nature made it into the board’s final explanation. 

As you might have expected, the Leeds employment tribunal found that Scott was indeed discriminated against based on age, a protected characteristic under the Equality Act 2010. They found that the retirement policy was a continuing act of discrimination and unanimously agreed that had Scott been under 60 years old, he would not have been treated in the same way. The firm previously justified their policy as a way of providing “intergenerational fairness” by freeing up equity, therefore offering progression opportunities for more junior partners. The tribunal accepted that intergenerational fairness could be a legitimate social policy aim but found no evidence that it was necessary for the firm to free up equity to do so. A remedy hearing will follow this decision. 

This judgment will be of particular interest to law firms, professional services firms, and their employees. It clearly reflects the current stance on mandatory retirement policies in the UK, and may lead some firms to review any similar policies to ensure that they are not at risk of any age discrimination claims.