Age Discrimination Legislation

With every employee now a potential litigant, Age Discrimination legislation could have a huge impact on the local workplace and even put businesses at risk - warn business leaders.

A group of leading business representatives recently debated the burning issue of Age Discrimination at a roundtable hosted by leading provider of online learning, learndirect. They were drawn from a variety of industries including construction, accountancy, law, market research, and business services.

Prompted by the new Employment Equality (Age) Regulations 2006 which came into force on 1 October 2006, the group debated three key issues: the impact of the legislation on SMEs (small to medium sized businesses), the culture change it is precipitating in companies and the role technology can play in helping them.

Figures just released by the FSB show that UK small businesses are facing a growing headache because of the complexity of employment law. Tony Cherry, Director at the Federation of Small Businesses, who attended the roundtable, said: "Calls to our free legal helpline rose by 8% year on year with over 76,000 calls taken in 2006. Specifically, calls relating to Age Discrimination have increased by a massive 664% since 2005."

The roundtable also identified the following:

1. Many SMEs are still taking a 'wait and see' approach, waiting for the first case law to point the way - despite the fact that failure to comply could mean heavy costs or even closure if a business is taken to court by a disgruntled employee.
2. The Act will have a wide and pervasive impact on businesses, not just on recruitment processes, but on the whole spectrum of Human Resources.
3. Companies need to change and adapt their culture to grow successfully. They will need to be more open minded regarding the age mix, recruiting the particular skills and knowledge that their business needs.
4. Despite this, there is a danger in becoming too flexible. With the burden of legislatory compliance so heavy, many employers are avoiding actually employing people and using self-employed contractors instead. As a result there has been a growth in 'virtual' companies.
5. The internet plays a vital role for SMEs in informing them and their networks about new developments in business legislation.

Attending the event, Angela Gorton, Head of Employment Law at Fox Hayes, a leading Leeds based solicitors, commented: "There is still much uncertainty as to what the legislation means. However, with 8,000 cases predicted to be brought in the next year and discrimination claims having no limit on the award of compensation that can be made, it is essential that firms act now to audit their policies and procedures and educate their staff to prevent against costly claims arising."

Michelle Lofthouse, Director of Business Development at learndirect, added: "Research shows that small businesses are facing ever tougher challenges with growing compliance requirements. Businesses need professional training and guidance that suits their individual needs. With the right support and opportunities for collaboration with their peers, they can learn how to manage new challenges like the new legislation."

To find out more about how learndirect can help your company, call the helpline on 0800 101 901.