Insight - In the line of fire.

(From Financial Director)

Byline: Cath Everett.

The controversial issue of ageism has reared its ugly head again, following a recent class-action lawsuit in the US against electronics retailer Best Buy.

The lawsuit was filed in November 2004 by 44 former staff who lost their jobs in two rounds of cuts, both in the run-up to and after Best Buy had outsourced its IT department to Accenture the previous April.

According to the filing, 82 of the 126 employees made redundant as a result of the move were over 40 - the starting point at which age discrimination legislation in the US applies. Best Buy is defending the action, however, and attests that the claims are without merit.

While finance directors currently do not need to fear falling foul of similar regulations in the UK because none exist, this situation is set to change as of December 2006, when the European Union's Framework Directive on the subject, introduced in 2000, becomes law.

Although staff can now sue under unfair dismissal legislation and potentially receive recompense of up to GBP55,000 for loss of future earnings and pension contributions, by the end of next year, employees of all ages will be entitled to file age discrimination suits and put forward claims for unlimited compensation.