The long awaited Age Discrimination legislation is upon us! The Regulations come into force in October 2006. It is set to have a colossal impact on the UK labour market for some time. There will have to be a mental shift in how mature and older people perceive themselves and on how employers view them, in turn.

Until now employers and the business community have had to contend with the ever changing impact of various anti discrimination laws over the last five years. Public sector organisations (including local government authorities) are still grappling with their new statutory obligations under Disability Discrimination Act 2005 and now, the Age Discrimination Regulation is around the corner!

What's in it?

Well, the draft Regulations, which will not affect the age at which people can claim their state pension, will:

  • ban age discrimination in terms of recruitment, promotion and training;

  • ban all retirement ages below 65 – except where the employer can objectively justify its action; and

  • remove the current upper age limit for unfair dismissal and redundancy rights.

The 2006 Age Regulations will also introduce:

  • a duty for employers to consider an employee’s request to continue working beyond retirement;

  • a requirement for employers to give written notification to employees at least six months in advance of their intended retirement date. This will of course, allow people to plan for their retirement.

Whilst this is all good news for employees, who may now plan out their future and retirement with relative ease, it is questionable whether most employees want to continue working well into their 70s, but at least for some, this is a good choice indeed. The Age Discrimination Regulations leaves significant areas of concern for employers. Some of which will include:

  • Planning ahead the retirement process;

  • Increased costs associated with employing someone over the age of 65;

  • Unlawful termination of employment and Redundancy Compensations will have to change to accomdate for new levels of award and increased rates for employees over 65; and

  • Pensions calculations.

This may also be a golden opportunity for employers to review their recruitment, promotion, training, diversity and reward procedures not to mention, retirement arrangements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.