There are currently 20 million people aged 50 and over in the UK and the figure is expected to reach 27 million by 2030.
On 1 October 2006, the Employment Equality (Age) Regulations come into effect. This new legislation makes it unlawful to discriminate on the grounds of age in employment and vocational training, unless this can be objectively justified. It prohibits direct discrimination, indirect discrimination, harassment and victimisation on age grounds. Specifically, the Regulations will:
- introduce a national default retirement age of 65 (to be reviewed in 2011). Compulsory retirement below 65 will be unlawful, except where retirement at a younger age can be objectively justified;
- remove the current upper age limit for unfair dismissal and redundancy rights;
- introduce a duty for employers to consider an employee's request to continue working beyond the normal retirement age; and
- impose a requirement that employers give written notification to employees at least six months in advance of their intended date of retirement and notify them of their right to request to continue working.
However, the new legislation will also have far reaching effects on many aspects of employment. The Advisory, Conciliation and Arbitration Service has published useful guidance for employers on the new Regulations. This covers the following areas:
- recruitment, selection and promotion;
- training;
- pay, benefits and other conditions;
- bullying and harassment; and
- retirement.
The guidance recommends that employers have an age profile of their workforce to enable them to determine whether remedial action is necessary, such as planning for a number of retirements due to take place around the same time, rectifying an obvious age imbalance in the workforce or ensuring that equal access is given to training and other opportunities. The guidance can be found at http://www.acas.org.uk/media/pdf/s/3/Age_and_the_Workplace.pdf.
Employers are responsible for the actions of their employees so if you need to bring about a culture change in your organisation, the time to act is now. Policies and procedures should expressly prohibit all forms of discrimination on the grounds of age. Staff should be in no doubt that harassment on the grounds of age will not be tolerated. There will be no upper limit to the compensation payable if an employer is found guilty under the new legislation.
The new laws may well mean that behaviour currently tolerated within the workplace could in future give rise to a discrimination claim by an employee. We strongly advise any employer who has not yet done so to draw up an age equality policy. In doing so, it is sensible to consult with your workforce or their representatives. Make sure all staff are aware of the policy and provide any training necessary for its implementation.
If you would like assistance in reviewing your employment rules and procedures, including those relating to recruitment, retirement and staff benefits, to ensure that these comply with the Regulations, please contact Dean Parnell on 0121 746 3360 or via our online contact form.
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