The Employers Forum on Age

Employers frustrated by age discrimination law proposals
12 October 2005

Employers are frustrated by the Government's final age consultation according to the Employer's Forum on Age (EFA). EFA members gave the Government a mere four out of 10 for effort for failing to produce clear and complete regulations. Employers are now challenging the Government on how they can be expected to prepare fully for age discrimination law due 1 October 2006.

A poll carried out among EFA members reveals that:

84% of employers think the Government's approach to retirement will lead to frustration from employees who believe they have a right to keep working. 63% of employers think that rather than encouraging organisations to keep people on post 65, the new age regulations will actually encourage employers to retire everyone at 65
79% of employers think the time scales proposed in the new 'planned retirement' process are unworkable
89% of employers find the Government's approach to service related benefits confusing, while 75% believe age regulations put annual leave, sickness benefits and long service awards under threat
59% of employers are worried about the lack of guidance available to help employers understand where and when they can continue to use age in employment decision making.

Many of the proposed age regulations remain incomplete, and the Government has already indicated that even those published may change.

To date, there is no information on:

Transitional arrangements (for planned retirement and redundancy schemes that straddle October 2006)
When the final regulations will be published
New redundancy arrangements
Final version of pension scheme exemptions

Sam Mercer, director of the Employers Forum on Age (EFA), says:

"UK employers are getting desperate. They were promised two years to prepare for the biggest piece of employment law for a decade, yet age laws will be introduced in less than 12 months, and still the regulations remain unclear and incomplete. Vital information on issues such as redundancy will come out in dribs and drabs, and UK employers will be lucky if they have all the details by April next year. The lack of time to prepare and lack of infrastructure to educate employers on their new responsibilities leaves UK plc dangerously exposed come October 2006."

The EFA calls on Government to:

Inform employers on transitional and new statutory redundancy arrangements by the end of November 2005
Make all service related benefits exempt
Publish final regulations and provide employer guidance by March 2006 - at the latest

James Davies, partner at Employment Lawyers Lewis Silkin, comments:
"While the Government's proposals are well intentioned, many employees will not understand that despite the introduction of age legislation, they still have limited rights to work beyond 65. For employers the difficulty will be in how they justify keeping on Joan (aged 67) but retire John (aged 65). Unfortunately the Government's well intentioned plans may result in companies retiring everyone at 65 to avoid costly employment tribunals".

For further information please contact Lizzie Barrett or Sarah Williams at CHA on 020 7622 8252

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