AGE DISCRIMINATION
WHAT DO YOU DO?

“By 2010 only 20% of the UK workforce will be white, able-bodied men, under 45 years old”
(Department of Work and Pensions 2005)

A diverse workforce is increasingly important to ensure you are attracting and retaining the right people and the best skills for your organisation. And it’s key to UK competitiveness, especially in light of changing demographics – the aging population and shrinking workforce

As you are aware from 1st October 2006 it will be unlawfully to directly or indirectly discriminate on the grounds of age.
This new legislation – the Employment Equality (Age) Regulations 2006 – covers people applying for a job, those already in employment, or vocational training. So it affects your workplace and your workforce.

The age regulations touch all parts of the employment process:

RECRUITMENT- where you advertise, what you say and how you do it.
RETENTION AND REWARD – how you reward people and the benefits you provide especially those based on length of service.
REDUNDANCY – who’s eligible, when and for how long?
RETIREMENT – when you can and can’t set retirement ages for staff, and the process you must follow.

It covers not only older workers but all ages – young, old and those in between. So employers should review any conscious or unconscious stereotyping based on age.

TURN MINDSETS ON THEIR HEADS!

“In 1950, one in ten of the population was over 65. Today it is one in six. There are now 1.5m more people aged 50-65 in the employment market than a decade ago.”
(Office for National Statistics, 2005)

Ending ageism in the workplace will require significant shift in mind sets for both employers and employees.
Research shows a notable difference between employers and workers concerning age in the work place of tomorrow. More than half the businesses (52%) agree they will want their staff to work beyond the age of 65 – but just 19% of employees say they will not do this. However, 35% of employees anticipate needing to supplement their pension. Employees still expect to retire by 65, but are increasingly recognising that their pensions may not be sufficient for their retirement.

DIRECT AND INDIRECT DISCRIMINATION
The Regulations prohibit unjustified direct and indirect age discrimination, harassment or victimisation on the grounds of age in all areas of employment.
People of every age are covered, young or old. They include all workers-employees, agency and contract workers and the self employed, in the public or private sector. As with other discrimination legislation, employers are responsible for their own action as well as the actions of their employees. They cover the following broad areas:

RECRUITMENT.
The age regulations start here to ensure you attract age diverse applicants. You can ask for a date of birth on application forms if necessary although it might be more appropriate on the equal opportunities form. And while that information is key for monitoring purposes, it should not be available to the interview.

Being clear about the skills required helps right from the start and means you can avoid relying on “years of experience” which could be seen as ageist.

Employers do not need to consider applicants over 65, unless the employer’s normal retirement age is over 65 or within six months of that age.

RETENTION AND REWARD
Pay and non-pay benefits based on length of service can continue if they are based on five years service or less.
After five years the employer has to be able to demonstrate that these benefits reward loyalty or motivate staff (For example additional holiday, long service awards and bonus scheme).

REDUNDANCY AND UNFAIR DISMISSAL
Age limits for redundancy and unfair dismissal will be removed. This gives older workers the same rights to claim unfair dismissal or receive a redundancy payment as younger workers, unless there is a genuine retirement. Selection for redundancy must not be based on age or length of service, so “last in first out” rule should not be used.
Lower and upper age limits in the statutory redundancy scheme will also be removed although the current age banded system stays in place.

RETIREMENT
A “national default” retirement age of 65 will be introduced for men and women (to be reviewed in 2011). Employers can set their retirement age at 65 or over, or not fix a retirement age at all. Employers need to give between six and twelve months notice to employees about their intended retirement date and notify them of their right to request working beyond retirement. This is one of the ways that employers and employees can enjoy flexible working practices, to enable better planning for retirement on both sides.

Working with Thorne Employment Ltd ensures you are drawing from an age diverse candidate pool and can help better balance from your workforce.

Please feel free to ask any questions you may have on the Age Discrimination Act 2006 on 01403 756772