New regulations have taken an age to come

The new regulations on age have been launched by the DTI today giving employers just six months to prepare before they become statutory. The Chartered Institute of Personnel and Development (CIPD) urge employers to appraise the new legal obligations without delay and take immediate action to avoid facing employment tribunals and hefty fines.

Dianah Worman, CIPD Diversity Adviser, says, ìFigures show age discrimination is still rife in the workplace. Although research suggests that many employers have already taken steps to get to grips with tackling age discrimination, making preparations for the new legislation presents extensive challenges to workplace policies and practices. Employers who have delayed or simply avoided taking action will be vulnerable to claims being taken against them when the law comes into force in October this year. The complexity of the regulations leaves employers little time to get ready so taking action now is imperative.î
Retirement

Despite outlawing age discrimination in the workplace, the Government has fought shy of taking the opportunity to abolish the default retirement age of 65, leaving workers over the age of 65 unprotected by the new regulations. The CIPD has argued that, with an ageing population, a developing pensions crisis and a continuing productivity gap between the UK and our international competitors, the Government should have removed the ability of employers to use the default retirement age as a poor substitute for proper performance management and development of older workers.

Dianah Worman said:
ìHaving a default retirement age of 65 makes no sense given it will be reviewed in five years time and may be raised to 70 to reflect individual choice, the reality of population changes, skills shortages and economic activity rates. Employers will then be faced with further reviews to process and procedures to allow people and business more flexibility to extend employment opportunities. This could turn into a bureaucratic nightmare rather than a means to foster gradual cultural change with regards to working life.

ìAbolishing mandatory retirement would give older workers more choice and flexibility in deciding how and when they stop working, but would also benefit business and the wider economy by encouraging better management of older workers, and extending access to a wider pool of skilled and experienced labour. We urge the Government to influence culture change within the workplace through informed communication based on education and awareness raising so that personal aspirations and business thinking is better informed.î

Length of service awards
By outlawing age discrimination, the Government has also potentially spelt the end for many kinds of awards offered by employers to their longer serving and loyal staff. The CIPD believes this is an unnecessary unintended consequence of the new legislation.

ìEncouraging and rewarding loyalty should be grouped as a business issue because length of service has no direct link with age discrimination. Older workers can have short periods of service in the same way as younger workers. The five year exemption period for long service awards is fine as far as it goes but requiring employers to justify the use of awards for longer periods may go against basic common sense and create problems for employers who will have to prove that abolishing their long service awards will have a direct impact on business performance,î adds Worman.

Evidence of discrimination
A recent CIPD survey produced in partnership with the Chartered Management Institute shows that age discrimination persists in many organisations. Tackling age discrimination in the workplace: creating a new age for all found six in ten respondents reported that they have been personally disadvantaged at work because of their age and nearly a quarter of those surveyed (22 per cent) admitted that age has an impact on their own recruitment decisions.

Worman suggests, ìEmployers need to work closely with line managers and other employees to ensure they understand the new regulations and waste no time in providing appropriate training.î

To help employers prepare for the governmentís new regulations on age discrimination, the CIPD has developed, Law on Tour, a nationwide tour of practical employment law workshops. The workshops will concentrate on the practical implications of the new age legislation.