Concerns have been raised that Croydon Council's redundancy pay calculator may be discriminatory due to its age-based calculations. The issue was highlighted during a meeting of the Appointments & Disciplinary Committee on Tuesday, 27 January 2026.
Councillor Robert Ward pointed out that the redundancy pay calculator, detailed in Appendix 1 of the Pay Policy Statement 2026-27 App1 - PPS - 2026-27.pdf, could be perceived as age-discriminatory because the calculations are partly based on an employee's age.
Dean Shoesmith, the Chief People Officer, acknowledged that the observation had validity. He stated that redundancy payments are calculated based on an employee's age, length of continuous local government service, and salary. Appendix 1d, the 'Early Retirement & Redundancy Scheme' App1d - retirement redundancy.pdf, provides a 'ready reckoner' grid that shows how age and continuous service (in years) influence the number of weeks' pay due.
For example, for an employee aged 25, 2 years of service results in 2 weeks' pay, while 6 years of service results in 4.5 weeks' pay. For an employee aged 45 with 2 years of service, it's 3 weeks' pay, and with 6 years of service, it's 8 weeks' pay. The statutory redundancy payment calculation is also detailed, with different rates for completed years of service up to age 21, from age 22-40, and from age 41 onwards.
Despite these concerns, Mr Shoesmith confirmed that the proposals adhere to statutory provisions.
The committee ultimately resolved to recommend the Pay Policy Statement 2026-27 to Full Council for approval, with Councillor Ward's concerns about the redundancy pay calculator noted. The full minutes of the meeting can be found here.