Schroders employee could win millions from ageism case

Haugh, 56, has alleged that Michael Dobson, chief executive of the UK-based fund manager, said he was firing her because he wanted someone younger to head the division.

Lawyers in New York said juries were often sympathetic to ageism suits brought by long-serving staff and had in the past awarded payouts of millions.

UK law does not prohibit ageism. But in the US, the Age Discrimination and Employment Act makes it illegal to sack anyone aged 40 and over on the basis of their age. Individuals can claim compensation for loss of future pay up to retirement age.

Haugh is also suing under the New York State Human Rights Act, which could entitle her to unlimited punitive damages.

Haugh says in her claim that following the appointment last year of Dobson, the company began judging employees on the basis of their age.

She points to a conference call in which executives allegedly discussed a new compensation plan that would increase the pay of employees in their 30s. Employees in their 40s and 50s were said to be less marketable, implying that they would stay with the company even if pay were low.

Dobson asked her to leave because he wanted someone younger, she says.

Schroders said: 'As a company we are fiully committed to equal opportunities and we reject any suggestion of discrimination. Ms Haugh's claim will be vigorously contested.'

The UK legal position will have to change because of the EU's European Discrimination Framework Directive, which requires that all member states pass laws forbidding age discrimination by 2006.

Fraser Younson, an employment lawyer at solicitors McDermott, Will & Emory in London, said he had already received a number of enquires from City of London workers keen to sue employers for age discrimination.

He said Americans working for US firms in the UK were already able to sue employers for age discrimination under Title 7 of the 1964 Civil Rights Act.

Haugh played a leading role in developing Schroders' North American business in the 1980s and 1990s. But growth recently faltered, in the wake of market declines.

Dobson came on board to reverse an overall decline in Schroders fortunes last year. He has gone on to make cuts in several areas. He recently axed Ian Brady and Ian Cooke, two senior US equity fund managers at Schroder Investment Management, in the wake of underperformance.