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The Issue of Age and Retirement

New legislation to outlaw discrimination on the basis of age is due to be in place in 2006. A key issue arising from this new legislation is how the mandatory retirement age fits in with a law preventing discrimination against employees due to their age.

Recap - The Facts On Age:

  • UK demographics mean that the proportion of older people to younger people in the workplace will increase significantly over the next few years
  • Since 1997 the employment rate of older people has risen faster than the working population as a whole
  • The average length of employment is higher for older workers
  • Older workers tend to have fewer qualifications than younger workers

Where can Age Discrimination Exist in Employment?

  • Recruitment
  • Pay
  • Jokes & 'teasing' among staff
  • Internal promotions
  • Training & development

Age Discrimination Legislation

Legislation to be in force in 2006 will act to prevent age discrimination in the employment cycle i.e. starting right from recruitment activity.

The Effect on Retirement Age?

The legislation will set a default retirement age of 65 but workers will have the right to request the opportunity to keep working beyond this. It will work in the same way as the flexible working legislation, in that employees have the right to request to work past 65 and employers can only refuse a request for business reasons. Failure to provide, in writing, valid business reasons, could be a potential source of unfair dismissal claims.

?The decision to retain mandatory retirement ages reinforces the negative stereotype that people have a sell-by date and supports the status quo? (Dianah Worman, CIPD Adviser).

While some employers may welcome the flexibility of the impending legislation, it may be seen to continue to discriminate against older workers and possibly send a message that workers above 65 are less effective and less valuable in the workforce.

Key Points For Employers

  • Regardless of new laws, it is feasible that age discrimination could already fall under existing laws preventing indirect sex discrimination and so employers should already be taking care not to discriminate in this way
  • Ensure your processes and systems are non-discriminatory
  • Regardless of the law, any stereotyping will lead to sub-optimal results. Test your current (unwritten) policies. If you are making decisions based on age it is time to change

For more information about age in the workplace and where you stand as an employer, call Lisa Davies on 01494 435310 or email lisa@hradvantage.co.uk

January 2005

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