2011/56: Severance payment in a social plan based on age as well as on period of employment (GER)
Severance payments in a social plan can be calculated according to both the age of the employee and to length of service. However, a provision in a social plan that considers the employee’s prospects on the labour market (which are dependent on age) in a way which puts the emphasis on age, must be specifically justified by a legitimate aim in accordance with section 10 of the German General Equal Treatment Act (the ‘AGG’).
Bundesarbeitsgericht (Federal Labour Court), 2011-04-12