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UK : Government Unveils Plans On Age Discrimination
By K.S., LeMarchedesSenirors
United Kingdom
December 15, 2004
Following extensive consultation last year, the Government has concluded that legislation should:
· set a default retirement age of 65, but also create a right for employees to request working beyond a compulsory retirement age, which employers will have a duty to consider;
· closely monitor the appropriateness of keeping a retirement age, subjecting it to formal review five years from implementation.
· This is a big step forward in meeting the demands of an ageing society. Currently, employers can set whatever retirement age they like, with many workers being retired at 60 or even younger. But with these reforms retirement ages below 65 will be allowed only if they can be shown to be appropriate and necessary.
So, people will no longer be required to retire before 65 unless their employer has proper justification. And the right to request working beyond retirement age will help to engender a real culture change, taking us towards a world where fixed retirement ages are consigned to the past. It builds on the success in changing the culture to promote family-friendly hours through the right to request flexible working in the 2002 Flexible Working Regulations.
This decision has no impact on the age at which people can collect their state pension.
Trade and Industry Secretary, Paticia Hewitt said:
"Age discrimination is the last bastion of lawful unfair discrimination in the workplace and we are committed to tackling it.
"It is vital that we widen the pool of workers so that employers can make the most of the full range of talent and skills available. Research suggests that age discrimination costs the UK £16 billion a year.
"We have listened to strong representations arguing that many companies still rely on a default age for business planning purposes; and there is a danger that, without one, there could be adverse consequences for occupational pension schemes and other work-related benefits. However, we will monitor the effects of the provisions closely and will fully review the position in five years' time.
"This legislation is not about forcing people to work longer. The default age is not a statutory compulsory retirement age; employers will be free to continue to employ people for as long as they are competent and capable. The right to request will help provide more choice and flexibility for those who wish to stay in work beyond retirement.
"Many businesses in the UK already recognise that equality and diversity is good for individuals and good for business, and we will provide further detailed guidance and support for business in the run-up to implementation."
Secretary of State for Work and Pensions, Alan Johnson said:
"We want to establish a real change of culture in the workplace where people are judged on their skills and talents rather than their age. We want to move towards a world where employers no longer assume that when workers reach a certain age they have nothing to offer.
"By taking action against retirement ages below 65 we offer workers clarity and more choice: they will know that the law stands behind their right to continue working to 65. And the new right to request means that, should they want to work beyond 65, they will now be able to address this with their employer.
"While many firms still rely on mandatory retirement ages, an increasing number of employers are organising their workforce planning around the best practice of not having any fixed retirement age at all, and the five year review of the retirement age will take account of these trends.
"Ultimately we look forward to a future where people have complete choice about when to stop working, and retirement ages become a thing of the past. If the formal review of the legislation suggests that we should abolish compulsory retirement ages, then that is what we will do."
In 2005, the Department of Trade and Industry will be consulting on draft age legislation covering this and the remaining areas, as highlighted in last year's Age Matters consultation.
The legislation will ban unjustified age discrimination in recruitment, promotion and other employment terms, as well as in vocational training.
The Government is already tackling ageism through the Government's Age Positive campaign which aims to influence the practices of employers and promote the business case for an age diverse workforce.
The Budget 2004 announced a new high profile national guidance campaign to support the introduction of age discrimination legislation. This will raise employers' awareness of, and ability to adopt, flexible employment and retirement opportunities in order to increase the recruitment, training and retention of older workers.
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