The Employment Equality (Age) Regulations 2006 are the final
stage of implementing the European Employment Directive. With the
approval of Parliament, the Regulations are due to come into force
on 1st October 2006.
"Ageism will affect more people, at some stage in their lives,
than any other form of discrimination. But until now the law of the
land has allowed it to continue. With these new regulations it will
become illegal for workers to miss out on recruitment, promotion or
training because of prejudice about their age," said Trade and
Industry Secretary Alan Johnson.
The Regulations (which will not affect the age at which people
can claim their state pension) will apply to individuals in work or
seeking work or access to training, to all employers, and to all
providers of vocational training (including further and higher
education institutions) or vocational guidance.
They will:
- ban age discrimination in terms of recruitment, promotion and
training;
- ban unjustified retirement ages of below 65 (the age limit is
to be reviewed in five years time);
- remove the current age limit for unfair dismissal and
redundancy rights;
- introduce a right for employees to request working beyond
retirement age and a duty on employers to consider that request;
and
- introduce a new requirement for employers to give at least six
months notice to employees about their intended retirement date so
that individuals can plan better for retirement, and be confident
that "retirement" is not being used as cover for unfair
dismissal.
The Regulations include transitional provisions to ensure that
employers can manage the process of retirement effectively in the
first six months of the regulations coming into force.
They contain a number of exemptions – in relation to retirement
and service related benefits and occupational pensions, for example
– and provide for other differences of treatment if they can be
objectively justified. They will also allow length of service
benefits to continue which recognise and reward loyalty and
experience and motivate staff, and will provide exemptions to allow
occupational pension schemes, which necessarily have age-based
rules, to continue to operate effectively.
"As we are living longer and healthier lives, it is essential
that the talents of older workers are not wasted. We must have the
opportunity to carry on working where that is what we want,” said
Mr Johnson. not work till you drop
but choose when you stop.”
"Considering talent and not age will help employers reap the
benefits of an age diverse workforce in reducing recruitment and
training costs and retaining key skills and knowledge," he
added.
Ashley Norman, Partner and Head of Equality & Diversity at
Pinsent Masons, the law firm behind OUT-LAW.COM, said,
"The changes represent a welcome
simplification and clarification of key elements such as the scope
for offering service related benefits and enhancing redundancy
payments. The introduction of transitional provisions
regarding retirement dismissals will be particularly welcomed by
employers. However, some uncertainties remain, such as in what
circumstances can an employer justify age based differential
treatment and on what basis refuse a request to work beyond
retirement."
According to a survey carried out in October by Pinsent Masons,
the law firm behind OUT-LAW.COM, most employers in Britain are
aware of the forthcoming measures but few have begun preparing for
it.
Of the 240 survey respondents, two thirds (66%) said they were
aware of the new Age Regulations and one third (33%) had taken
steps to review their policies and procedures. Less than a third
had sought specialist advice on the implications of the
legislation.
