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In
spite of this, however, some firms still haven’t caught up with the full
implications of the regulations. Unfortunately for them, ignorance is far
from bliss where age regulations are concerned.
Breaches can carry unlimited fines so any mistakes could prove costly. Any
firm that hasn’t already sought advice on putting compliance procedures in
place should seek legal advice as soon as possible. In the meantime, it
may be useful to recap on some of the main changes that now affect every
aspect of employment from recruitment through to promotions and all the
way on to retirement.
Recruitment
Firms won’t be able to specify age limits such as ‘under 25’ when
recruiting new staff. Adverts such ‘bright, energetic, dynamic’ which
imply a preferred age group will also be unacceptable. This cuts both way
with the regulations offering equal protection to younger applicants. It
will be unlawful, for example, to discriminate against young people by
setting arbitrary conditions such as insisting on at least ten years
experience – a condition which by definition, people in their 20s would be
unable to meet.
However, employers do not have to recruit people who are within six months
of retirement age.
At work
It
will be unlawful to discriminate against any employee on the grounds of
age. Age cannot be used as a basis for deciding on levels of pay or
benefits. Benefits based on five year’s service must be seen to recognise
experience or reward loyalty.
The national minimum wage bands will still apply.
Most of the elements relating to occupational pension schemes will be
exempted. There are some exceptions so it would be wise to seek advice
before making lasting decisions that could later prove costly.
There is no upper age limit at which employees can claim unfair dismissal
and redundancies cannot be based on age or length of service. The simple
process of last in first out can no longer apply.
Promotions
You cannot ignore someone for promotion simply because you consider them
to be too young or too old. There has to be other objective reasons. The
same applies to training, so you cannot overlook someone simply because
you feel they are too old to learn new skills or won’t be around long
enough to make the investment worthwhile.
Retirement
The national default retirement age will be 65. Employers can oblige
employees to retire at that age but it will be unlawful to oblige workers
to leave before then.
There is now a set process for handling retirements that must be followed.
The employer must write to employees at least six months before their
expected retirement date informing them that they have a right to request
to remain at work. Such requests have to be considered but they don’t have
to be granted. However, the employer must inform the employee in writing
of the decision.
If
the answer is no then the employer doesn’t have to give a reason but he
does have to allow the employee to appeal.
It is important not to underestimate the impact that age
regulations could have. There was a 40 per cent increase in tribunal cases
when age legislation was introduced in the
United States. In
Ireland, which has also pioneered new regulations, one in five tribunal
cases is now to do with age.
But it would be wrong to think the
same thing is automatically going to happen here. We have the
advantage of being able to learn from their experience. The lesson that
emerges from other countries is that it’s not so much the regulations that
cause the problem, but the unwillingness of many firms to prepare for them
properly.
Firms who put the right procedures in place should have little to fear.
Contact Sally on 0115 9886736 for more information.
Email :
Sally Laughton | 
