Ericsson older worker cuts will be illegal under new age discrimination law

A move by telecoms firm Ericsson to offer voluntary redundancy to about 1,000 of its employees in Sweden aged between 35 and 50 would be illegal after October this year, legal experts have said.

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The company announced last week that workers aged between 35 and 50 with a minimum of six years’ service will be eligible for a voluntary redundancy package comprising 12 to 18 months’ salary, a £3,700 payout and the chance to participate in a career-change programme. It is also planning to recruit 900 new staff up to the age of 30 in the next three years.

But lawyers have warned that the move would be illegal under EU-wide age discrimination legislation, which into force in October this year.