A senior civil servant in the Revenue Commissioners, who was passed over for promotion, has been awarded €60,000 after the Equality Tribunal ruled he was discriminated against on the basis of his age.
The finding is likely to have major implications for the Civil Service by obliging authorities to adopt a more transparent promotions process.
John Fagan, who was 59 at the time of the discrimination, began work with the Revenue Commissioners in 1979 and had 14 years of service as a higher executive officer.
He was assessed as being well qualified for promotion to assistant principal officer by his line manager. However, a young colleague was selected to act up as assistant principal officer to cover a period of maternity leave.
Several months later, he was not recommended for a panel of people suitable for promotion by his principal officer, although three younger colleagues were placed on this panel.
The equality officer found that the Revenue Commissioners discriminated against Mr Fagan in both instances.
The officer noted that the Revenue failed to produce a single document to demonstrate that the treatment of Mr Fagan was wholly related to factors unconnected with his age.
All promotion procedures within the Civil Service should now be reviewed to ensure that they are open, transparent and free from discrimination, the tribunal has ruled.
The Revenue Commissioners has also been told to ensure that the reasons behind decisions made in the course of promotion conferences are clearly identified and free of bias.
Mr Fagan (63) from Ballinteer, Dublin, told The Irish Times he was delighted with the outcome and hoped it would have a positive impact for older people employed in the Civil Service.
"I'm very relieved that it's finally over," he said. "I had 42 years in the Civil Service and never once was told by anyone that I wouldn't be promoted. My aim in life has always been to better myself and do the best for my family.
"It would have affected my earnings for the rest of my life and the pension entitlements for my wife, if she lives after me. They were huge issues for me. "
The Equality Authority has welcomed the decision. Its chief executive Niall Crowley noted that age discrimination generated more cases than any other area under employment equality legislation.
"This is an area that the Civil Service should be showing leadership in," Mr Crowley said. "All promotion process within the Civil Service should now be reviewed to ensure that they are open, transparent and free from discrimination."
He added that a strategy should be developed to promote equality for older employees, to support the effective management of age diversity and to seek to eliminate age based discrimination in the Civil Service.
"This could build on similar and valuable initiatives already taken by the Civil Service in relation to women and to people with disabilities," Mr Crowley said.