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Implications of age discrimination
legislation
The ageing population means that employers
benefit from the fact that older people are interested not only in full
time work, but also in part-time & contract work, thus offering greater
flexibility.
The law affects employers,
training & education providers, trade unions and professional
associations.
The last two must also be aware that legislation affects them not only as
employers but also from the point of view of membership.
The law
covers
all aspects of recruitment and
selection, training & development, promotion, pay & benefits,
statutory redundancy and retirement ages; and protects job applicants, working people,
people on training, people seeking training, crown appointed people, and
members & applicants to trade unions and professional bodies
The law includes direct and
indirect discrimination and harassment, but there will be
exceptions if they can be justified, “and there is supporting evidence”.
The EU
directive states that differences in treatment may be permitted where they
are:
"objectively and
reasonably justified by a legitimate aim, and if the means of achieving
that aim are appropriate and necessary”
Legitimate
aims may include
health & safety, facilitation of employment planning, training
requirements, encouraging or rewarding loyalty, and the need for a reasonable
period of employment prior to retirement. Access to
vocational training for particular categories to promote their vocational
integration is also being considered as a justification for different
treatment.
Only
case law will establish what is acceptable!
There are
key implications for employers
A
company needs to review its procedures and consider the issues
relating to company retirement plans, recruitment & selection
procedures, promotion procedures, training & development processes,
remuneration schemes, and termination policies. A company needs to
implement an age audit and assess the implications of the results.
The aim is to be able to justify your position.
More
challenges arise from hiring of temps, flexible working, sickness entitlement,
insurance and discipline procedures
All is not doom and gloom however - a company should look for the
upside by considering whether there may be new business opportunities by
filling the age gaps that become evident from an age audit. Companies such
as B&Q, The Halifax and Domestic & General Insurance identified ‘bottom line’ benefits from employing older workers.
These benefits have come about due
to the characteristics that older
workers bring with them, such
as a mature approach enabling them
to relate well to their peers, take on greater responsibility, a high
degree of loyalty leading to reduced turnover costs, reduced training costs because many experienced
workers require little more than induction training, a
strong work ethic giving greater productivity, and increased sales by
‘mapping’ front line employees with consumers.
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