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:
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.
