Terence McCoy said he was "delighted" with the landmark settlement.

He won his case against Belfast timber firm James McGregor and Sons Ltd after enlisting the aid of the Equality Commission.

The employment tribunal ruled that the company discriminated against him on grounds of his age and was the first such decision in Northern Ireland since the Employment Equality (Age) Regulations (Northern Ireland) 2006 were introduced on October 1, 2006.

Mr McCoy, then aged 58, had applied for one of two posts with the Belfast timber firm in December 2006, and, after two interviews, was told he was unsuccessful.

The tribunal drew an inference of discrimination from the use in the recruitment advertisement of the phrase "youthful enthusiasm".

It also concluded that there was a linkage made "between the issue of age and the concept of what has been variously referred to in the case as 'enthusiasm', 'motivation' and 'drive'".

The tribunal said in its decision that "but for his age (Mr McCoy) would more probably than not have been selected for one of the two posts".

Mr McCoy said: "I am delighted with the resolution.

"I am very grateful to the Equality Commission and the legal team who conducted this case for their assistance and advice throughout the process.

"I am relieved that this is now at an end, but I feel it is unfortunate that I was treated in such a way and that it was necessary to take this action in the first place."

Eileen Lavery, head of strategic enforcement in the Equality Commission, said that the settlement emphasised to all employers that they must treat issues of age discrimination seriously.

"Decisions about recruitment, or any other matters in the workplace, should not be based on assumptions about the capacity or suitability of individuals just because of their age.

"The law now protects people against such discrimination and the Equality Commission can advise anyone who believes they may have been treated in a similar fashion."

She said it wouldn't be the last such decision: "Commission is supporting a number of age cases and there are also a number of others bringing claims on their own, so we anticipate that there will be more decisions on age discrimination."

The tribunal had scheduled a hearing on remedies in the case, but following the settlement, James McGregor and Sons Ltd also agreed to liaise with the Equality Commission regarding its practices and procedures.