In October another new law is due to come into force that outlaws direct and indirect discrimination against age in the workplace and vocational training, and there are potential pitfalls for the unwary.

The Employment Equality (Age) Regulations 2006 apply to the self employed, contract workers, temporary workers and home workers as well as those in full time employment.

As the new law covers all aspects of employment including recruitment, training, promotion, benefits, dismissal and retirement, employers need to review their procedures. Employees who believe they are the victim of age discrimination can refer the matter to the Employment Tribunal, so employers need to think carefully before making any arrangements that would disadvantage people because of their age, unless it can be justified objectively.

For example when advertising for new staff, descriptions like ‘mature’ or ‘young and enthusiastic’ will imply discrimination. Asking for a specific level of experience, unless you can justify that it is essential, or is a genuine occupational requirement may also be considered discriminatory. If there are legal restrictions, such as serving alcohol below 18 years old, then specifying age will be permitted.

If you pay your staff or provide benefits based on length of service, this will only be allowed if the scheme covers five years or less. Pay schemes covering more than five years will be permitted provided they fulfil a specific business need, such as loyalty or motivation.

Under current legislation, employees over 65 cannot claim unfair dismissal or redundancy, but this will be abolished under the new regulations.

Under the new law 65 will be the default retirement age. Provided an employer follows correct procedures, it will be fair to retire employees on the default retirement age, but if an employee is forced to retire below that age, it will constitute unfair dismissal.

Under the new law, employers must notify employees of their due retirement date at least six months, but not more than a year before the due date or they could be liable to pay compensation. If the notification is received less than two weeks before the retirement date, this will automatically be constituted as unfair dismissal.

Employees now have the right to request working beyond their normal retirement age. They must put their request in writing at least three months before the retirement date. Although there is no obligation to agree, the employer must consider the request and hold a meeting for that purpose and advise the employee in writing of the decision. The employee can appeal and a further meeting will be required. If this procedure is not followed, the employee can then claim compensation for up to eight weeks pay via the Employment Tribunal.

These new regulations apply to employees retiring after 1 April 2007 and there are special transitional regulations for employees due to retire between 1 October 2006 and 31 March 2007.

If you need further information on the new retirement regulations or any other legal matters contact Robin Francis at Motley & Hope Solicitors in Biggleswade. Contact Robin on 01767 600600 or e-mail robinfrancis@motleyandhope.co.uk.