One of the most significant changes in employment law for years finally came into force on October 1st – with many businesses yet to address the issue within their workplace.
According to the Department of Trade and Industry, no fewer than 8,000 Tribunal claims will be made under the new law each year.
In short, the Employment Equality (Age) Regulations 2006 and The Employment Equality (Age) Regulations (Northern Ireland) 2006:
Prohibit age discrimination in recruitment, promotion and training;
Set a default retirement age of 65;
Remove the upper age limit for unfair dismissal and redundancy rights;
Introduce a new right for employees to request to work beyond retirement age;
Introduce a new requirement for employers to give at least six months’ notice to employees about their intended retirement date;
Allow benefits which recognise loyalty and experience to continue;
Provide exemptions for many age-based rules in occupational pension schemes;
Remove the lower and upper age limits in the statutory redundancy schemes, but leave the current age-banded system in place; and
Remove the age limits for statutory sick, maternity, paternity and adoption pay.
Moreover, as with other discrimination claims, the maximum award against those found guilty at Tribunal is uncapped.
In the short term, employers must comply with transitional arrangements to ensure retirement dismissals are fair and employees are protected from unnecessary or unfair dismissal.
These arrangements stipulate the length of notice given to any member of staff intending to retire between October 2006 and April 2007.
Employees will have the right to request that they be allowed to work beyond retirement age and can ask not to be retired even after their contract has been terminated, providing their request is made within four weeks.
Employers should remember that employees leaving on retirement are subject to the normal regulations on dismissal. Not following the correct procedure, therefore, can give rise to claims for unfair dismissal.
After April 1st, 2007, those retiring will be subject to the full retirement procedure, which stipulates that employers should notify staff of their intended retirement date between six and 12 months in advance.
Assuming they have been properly notified, any employee who wants to continue working must make their request at least three months before the proposed retirement date.
Employers must consider all requests not be retired, while the employee has the right to appeal against any decision.
For further information about age discrimination legislation please call 0161 785 2000
