Age discrimination proposals

July 14 2005 - The UK Government has published draft measures to give over 65s the same rights to unfair dismissal and redundancy payments as their younger counterparts under new measures to outlaw age discrimination in the workplace

The draft measures are the final stage of implementing the European Employment Directive. Assuming Parliamentary approval, the regulations are due to come into force on 1 October 2006.

The draft regulations will not affect the age at which people can claim a state pension and will:

• ban age discrimination in terms of recruitment, promotion and training;
• ban all retirement ages below 65 - except where objectively justified; and
• remove the current upper age limit for unfair dismissal and redundancy rights.

The following will also be introduced:

• a duty for employers to consider an employee's request to continue working beyond retirement; and
• a requirement for employers to give written notification to employees at least 6 months in advance of their intended retirement date. This will allow people to plan for their retirement.

Trade and Industry Secretary Alan Johnson said;

"Individuals should have the choice to carry on working if they want to. This is not about forcing people to work longer, it is about freedom to choose.

"Equally, to thrive in a competitive market British business increasingly bases its employment and training decisions on talent not age. Employers know that they cannot afford to ignore the skills of any worker - young or old.

"People need to be able to plan for their future and retirement should not come as an unexpected surprise. The duty for employers to give at least six months notice will help individuals make informed decisions about retiring.

" These regulations are an important step forward, ensuring individuals benefit from important new rights and opportunities while allowing business to operate productively and fairly."

The Department of Trade and Industry is consulting on the practical application of the draft regulations, to ensure they are effective and workable. The consultation also makes employers, training providers and individuals aware of their new rights and responsibilities, enabling them to prepare for the new legislation. Responses will help the clarity of later written guidance.

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July 2 2003 - Trade and Industry Secretary Patricia Hewitt has published a consultation document - Age Matters - on proposals to outlaw age discrimination in the workplace from October 2006.

The government is consulting on the way in which the UK should implement the EU Employment Directive prohibiting age discrimination in employment and vocational training.

Views are being sought on a range of specific policy aims including:

- Abolition of employers' mandatory retirement ages (dismissal at a given age unless employers can objectively justify them;

- The possibility of a default retirement age of 70, at which employers could retire employees;

- Proposed legitimate aims which employers, exceptionally, could use to help justify the retention of a small number of related practices; and

- Changes to the legislation regarding unfair dismissal and redundancy. Specifically, older workers will be restricted to redundancy compensation of one week's pay per year of service as is currently the case with those under 40. The maximum entitlement will be for 20 years service but employment under the age of 18 will be counted.

Patricia Hewitt said:

"Age discrimination is the last bastion of lawful unfair discrimination in the workplace and it will be outlawed.

"In particular we must challenge the ageist assumption that younger employees make the best workers. It is a sad fact that thousands of people in their 40's and 50's who have been made redundant never work again.

"It is vital that we widen the pool of workers so that employers can make the most of the full range of talent and skills available. Research suggests that age discrimination costs the UK £16 billion a year.

"But this legislation is not about forcing people to work longer. It will provide more choice and flexibility for those who wish to stay in work in their 50's and 60's.

"Many businesses in the UK already recognise that equality and diversity is good for individuals and good for business, and we will provide further detailed guidance and support for business in the run-up to implementation.

"We intend to have regulations in place, but not in force, by the end of 2004. This will provide all those affected plenty of time to prepare for the changes before the legislation comes into force at the end of 2006."

Consultation runs until 20 October 2003 and views are sought from a broad range of stakeholders.

John Cridland, CBI Deputy Director-General has already said that:

"Employers fully accept the need to signal clearly that age discrimination is unacceptable. But they will fear an explosion of employment tribunal cases because age discrimination is more difficult to define than other discrimination legislation.

"Employers have to make judgements about the experience needed to do a job and that could be open to challenge in the courts. In the current compensation culture, there is a risk that people will take advantage of a lack of clarity on what is and isn't lawful."

On the retirement age of 70, Mr Cridland said:

"What we need is a flexible decade of retirement that gives choice for everybody, employers and employees. Neither employer or employee should be forced to carry on longer than they want to.

"Employers will be relieved that the government has proposed a cut off point so employment contracts don't just go on forever. But 70 could be on the high side for some firms."

The government gives the following examples of age discrimination in employment that will be illegal from October 1 2006:

- an employer telling all employees that they are too old to go on training programmes. This is because they don't learn as well as younger people and that from now on, people in their twenties and thirties will be prioritised for training;

- an employer setting a mandatory retirement age at 60, because they want to attract new blood into the organisation and keep the profile of their workers young. He says that older workers are less creative and "stuck in their ways";

- an employer stating that they want to recruit a "mature and reliable candidate" and that they will only accept applications from people over 30 years of age; and

- a bar or a fashion store advertising for young and energetic sales people. They want to recruit someone who fits in with the age profile of their customers, and believe that young people are more likely to buy their goods if served by someone young.

Newer article: UK manufacturers call for standard retirement at 65