AGE DISCRIMINATION The Employment Equality (Age) Regulations 2006 Information Centre Fact Sheet September 2006 EMPLOYMENT EQUALITY (AGE) REGULATIONS 2006 This fact sheet highlights key facts businesses will need to know, but members of the London Chamber should also use the more detailed information and guidance given by the organisations listed and on the various websites given. The Employment Equality (Age) Regulations 2006 come into force on 1st October 2006*. The regulations apply to all employers and will impact on the whole of the employment relationship, covering recruitment, training, promotion, remuneration, benefits, redundancy and retirement and the regulations affect employees of all ages young and old. *N.B. The pension provisions part of the regulations will not now come into force until 1 st December 2006. This delay has been in response to concerns expressed by employers. This additional period of time gives pension schemes more time to adjust to the regulations. James Purnell, the Minister for Pensions Reform, has commented: "During the intervening time we shall be running an informal consultation in which we will investigate whether any amendments should be made to the current regulations”. The following website of the Office of Public Sector Information contains the Employment Equality (Age) Regulations 2006 http://www.opsi.gov.uk/si/si2006/draft/ukdsi_0110742664_en.pdf UNDERSTANDING THE REGULATIONS The following sources and websites give good, concise explanations of the regulations: The Department of Trade and Industry’s website dealing with age discrimination in employment and vocational training is particularly useful: http://www.dti.gov.uk/employment/discrimination/age-discrimination/index.html ACAS, who are the government nominated agency for providing advice and guidance on age issues, have issued a useful guide for employers: Age and the Workplace: Putting the Employment Equality (Age) Regulations 2006 into Practice. http://www.acas.org.uk/media/pdf/d/t/6683_Age_and_the_Workplace_AWK.pdf ACAS, 22nd and 23rd Floors, Euston Tower, 286 Euston Road, London NW1 3JJ. Acas supply the guide in hardcopy: contact their Orderline: 08702 42 90 90 ACAS operate a Helpline on the regulations: 08457 47 47 47 Website: www.acas.org.uk Age Positive – A website of the Department of Work and Pensions to help employers end age discrimination http://www.agepositive.gov.uk/ London Chamber of Commerce Members of the London Chamber of Commerce with specific queries arising from the regulations can also use the free Legal Advice Line which covers employment matters. Simply call 01455 251500 quoting your membership number and the London Chamber of Commerce reference number: 71340. 1 London Chamber of Commerce 33 Queen Street, London EC4R 1AP COVERAGE The regulations apply to: People of all ages, both young and old. All employers, the self-employed, further and higher educational institutions, those providing vocational training and private training companies. Managers and trustees of occupational pension schemes. Membership organisations such as trade associations, trades unions, professional associations and institutes and employers organisations will be affected both as employers and in relation to their membership. All employees and workers (permanent and temporary), job applicants, agency workers, contract workers, overseas workers, paid or unpaid vocational trainees, company directors and partners, office holders, police. The regulations do not apply to the regular armed forces (including full-time and part-time reservists) and unpaid voluntary workers. WHAT THE REGULATIONS DO Prohibit age discrimination in terms of recruitment, promotion and training. They prohibit unjustified direct and indirect age discrimination, and all harassment and victimisation on the grounds of age. See Age Legislation Fact Sheet No. 1: An Overview: (Department of Trade & Industry): http://www.dti.gov.uk/files/file29239.pdf See also Age Legislation Fact Sheet No.2: Objective Justification: (Department of Trade & Industry): http://www.dti.gov.uk/files/file29240.pdf See also Age Legislation Fact Sheet No4: Vocational Training: (Department of Trade & Industry): http://www.dti.gov.uk/files/file29243.pdf Introduce a right for employees to request working beyond compulsory retirement age, which employers have a “duty” to consider. See Age Legislation Fact Sheet No. 7: Retirement: (Department of Trade & Industry): http://www.dti.gov.uk/files/file29246.pdf See also Age Legislation Fact Sheet No 3: Transitional Arrangements: (Department of Trade & Industry): http://www.dti.gov.uk/files/file29241.pdf Prohibit unjustified retirement ages of below 65. Remove the upper age limit for unfair dismissal and redundancy rights, giving older workers similar rights to claim unfair dismissal or receive a redundancy payment as younger workers. See Age Legislation Fact Sheet No 6: Redundancy (Department of Trade & Industry): http://www.dti.gov.uk/files/file29245.pdf Allow pay and non-pay benefits which recognise and reward loyalty and experience to continue, but only with reference to a maximum period of 5 years. In cases of longer periods of service, employers will have to show they believe there is advantage from rewarding loyalty, encouraging motivation or recognising experience. See Age Legislation Fact Sheet No. 5: Service Related Benefits (Department of Trade & Industry): http://www.dti.gov.uk/files/file29244.pdf 2 London Chamber of Commerce 33 Queen Street, London EC4R 1AP Provide exemptions for many age-based rules which exist in occupational pension schemes. N.B. Please note the pension provisions part of the regulations will not now come into force until 1st December 2006. See website of the Government News Network: http://www.gnn.gov.uk/Content/Detail.asp?ReleaseID=225897&NewsAreaID=2 See: website of Financial Times: http://www.ft.com/cms/s/d294190a-3f68-11db-a37c-0000779e2340.html See The Impact of Age Regulations on Pension Schemes (Department of Trade and Industry): http://www.dti.gov.uk/files/file28230.pdf See also Age Legislation Fact Sheet No.8: Occupational Pensions (Department of Trade and Industry): http://www.dti.gov.uk/files/file29247.pdf Remove the age limits for Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP) and Statutory Paternity Pay (SPP). In limited circumstances treating people differently because of their age may be justifiable if there is an “objective justification”. Employers must show that the discriminatory treatment or practice is a “proportionate means of achieving a legitimate aim”. There are other exceptions and exemptions to the regulations and Genuine Occupational Requirements (GORs). Please see the section on Objective Justifications, Exceptions, Exemptions and Genuine Occupational Requirements in the ACAS guide Age and the Workplace: Putting the Employment Equality (Age) Regulations 2006 into Practice referred to earlier in the fact sheet. DEFINITIONS WITHIN THE REGULATIONS Direct discrimination This may consist of giving less favourable treatment because of a person’s age, such as refusing to employ or to provide training for someone because they are considered to be too young or too old. Indirect discrimination This applies to recruitment/selection criteria, benefits, employment rules, policies and practices which, whilst applied to all employees, may discriminate against a person because of their age e.g. asking for a particular length of experience in advertising a job which may prevent a young person from applying. Harassment This is behaviour which is offensive, frightening or distressing. It may be intentional ageist bullying, but may include name calling or teasing, which may not be intended to harass, but may upset the person on the receiving end. Harassment may include a culture that tolerates ageist jokes, even if an individual is not being targeted. Victimisation This occurs when a person is treated detrimentally because they have complained about discrimination or harassment or have given evidence, or intend to give evidence, relating to a complaint about discrimination or harassment. They may be denied promotion or training or be ignored by colleagues. 3 London Chamber of Commerce 33 Queen Street, London EC4R 1AP COMPLYING WITH THE REGULATIONS Many businesses still have discriminatory practices such as promotion based on length of service, compulsory retirement ages, selection for redundancy based on age or in their training arrangements. In order to implement the regulations, employers should pay particular attention to the following areas: Recruitment Advertising media should be carefully chosen to ensure all age groups have knowledge of a vacancy. Age and minimum/maximum lengths of experience should not be specified in person specifications or advertisements. Avoid using language which may imply you would prefer someone of a certain age such as “mature”, “young” or “energetic”. Make sure any qualifications specified do not disadvantage people of different ages e.g. requiring candidates to have GCSE English would exclude those who left school before the GCSEs were introduced. Avoid asking for “x many years” experience which could rule out younger people with necessary skills. Focus on abilities, skills and potential, not age, when considering applications and during interviews avoid asking questions related to age. The use of competence based recruitment is useful to avoid potential claims of discrimination. Careful monitoring of recruitment and selection is advisable to be able to demonstrate that no discrimination has taken place. The same principles apply to both internal and external recruitment. Training Training opportunities should be available to all, should be suitable for all ages and all age groups encouraged to participate. Account should be taken of how different age groups or individuals may learn – some employees may be unfamiliar with classroom-based courses and those who have just left full time education may need time to adapt to informal on-the-job training. Employees may take positive action to prevent or compensate for disadvantages linked to age e.g. providing IT skills training for older people whose work has become computerised and where a younger employee may be already adequately skilled. Promotion, Appraisal and Performance Management The same standards of performance should be used irrespective of age. Appraisals should be unaffected by any preconceptions about an employee’s age. Ensure promotion openings are available to all employees and have a policy on promotion/career development that stresses age is not a barrier and make sure this is communicated to your staff. People may not take up promotion opportunities if it is implied they are “too young” or “too old”. Experience is important, but it is the time doing the job and the competence of the individual that gives them the relevant experience, not their age. Redundancy Check your procedures are free of age discrimination when selecting for redundancy. Practices such as “last in, first out” and using length of service are likely to be age discriminatory. Ensure incentives for voluntary redundancy are not age-biased. (The government’s Statutory Redundancy Payment Scheme (SRPS) remains in force, and includes payments determined by age). Retirement Retiring employees below 65 will require objective justification, such as a request from an employee for early retirement or an agreed ill-health retirement. Otherwise, normal retirement should be 65 or above. Employers must inform employees in writing of their intended retirement date and of their right to request to continue working beyond retirement age at least 6 months in advance (but no more than 12 months). Employees have a right to request to work beyond their retirement date and the employer has a duty to consider the request, but 4 London Chamber of Commerce 33 Queen Street, London EC4R 1AP is under no obligation to agree to the request. Such requests should be submitted by the employee at least 3 months before the intended retirement date. Employers should meet with the employee to discuss it within a reasonable period and inform them of the decision as soon as practicable. Employers are advised to provide training on age discrimination for managers, line managers, supervisors and staff involved in recruitment. Include age discrimination in equal opportunities policies and communicate this to all employees. Ensure other policies, such as holidays, discipline, grievance, sickness or flexible working options are not biased by age. Always bear in mind that any requirements in job descriptions regarding age and experience must be objectively justifiable. ENFORCEMENT OF THE REGULATIONS Enforcement is the same as for other discrimination legislation. Employees will have to follow the statutory grievance procedure before bringing a claim to an employment tribunal. Claims would normally be made within 3 months of the act complained about, though a tribunal can consider claims outside this period. As with other forms of discrimination, there is no limit to the amount of compensation which may be awarded. OTHER USEFUL WEBSITES Business Link http://www.businesslink.gov.uk/bdotg/action/ruDetail?r.s=rul&type=REGUPDATE&topicType=1&it emId=1077903562 BBC business news http://news.bbc.co.uk/1/hi/business/5260510.stm The Trades Union Congress (TUC) website gives a useful briefing on the regulations: http://www.tuc.org.uk/equality/tuc-11775-f0.cfm Equality Direct http://www.equalitydirect.org.uk/ Equality Direct also operate a helpline: Telephone: 0845 600 3444 Equality Challenge Unit http://www.ecu.ac.uk/guidance/age/ Safe Start! Campaign ensuring a safe and healthy start to young working lives http://ew2006.osha.eu.int/whyyoungpeople Fact sheets and resources for employers, and employees FACT SHEETS AND JOURNAL ARTICLES CIPD (2006) Fact Sheet Age and Employment Chartered Institute of Personnel and Development (6 pages) http://www.cipd.co.uk/subjects/dvsequl/agedisc/ageandemp.htm?IsSrchRes=1 Young Workers (2004) Advice Services Alliance http://www.advicenow.org.uk/fileLibrary/pdf/youngworkers_-_080405.pdf 5 London Chamber of Commerce 33 Queen Street, London EC4R 1AP Advice on Harassment, Discrimination, Working Time, Pregnancy, Health and Safety relating to Young people (16 pages) Age and Employment (2004) Faculty of Occupational Medicine Position Paper http://www.facoccmed.ac.uk/library/docs/ppageemp.pdf (4 pages) Includes sections on Workability / Employability and Good Occupational Health Practice Suff, R. (2004) Using age-diversity policies to attract and retain older workers. IRS Employment Review. No 808, 24 September. pp 42-48. Vickerstaff, S. (2005) Managing the older workforce. Equal opportunities review. No 137, January. pp 6-10. ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦ Disclaimer Whilst every effort has been made to ensure the accuracy of the information contained in this fact sheet, the London Chamber of Commerce and Industry does not guarantee the accuracy of the information contained therein and does not accept responsibility for errors, omissions or their consequences. 6 London Chamber of Commerce 33 Queen Street, London EC4R 1AP