Is Your Business Risking Age Discrimination Breach?

Almost 2.5 million small and medium sized businesses in the UK could be vulnerable to age discrimination claims if working practices regarding age are not reviewed or changed before October 2006.

The new legislation on age discrimination becomes law in October 2006, yet an AXA survey shows that 40% of small business leaders are not even aware of it; and 44% of those who are aware of it have not even started to consider its implications for their business.

As there are over 6million employees aged between 50 and retirement age, it is clear that no business employing or taking on staff should be unaware of this legislation.

Worryingly, more than half of SME managers questioned (56%) expressed concern about the negative effect of increased employers’ liability likely to be incurred with an older workforce, and nearly one in three (31%) are worried about having to fund longer pension plans.

While 89% of small business leaders believe investment in training and mentoring courses are important to overall success, nearly a quarter (23%) felt the cost and time they would need to invest in training older workers would have a negative effect on the profitability and productivity of their business.

Despite these concerns, 41% of respondents agreed that the potential of an older workforce is a positive thing for UK business, compared to only 15% of respondents who see it as negative.

Lou Macari, head of business consultancy and training at AXA, comments; “By 2006 there will be more 55-64 year olds than 16-24 year olds in the UK for the first time, and the Turner Report and impending age discrimination legislation are a timely reminder that all businesses need to adapt to support the new profile of the UK workforce.

For more information on the new legislation, visit our news article here.

posted by The Editor @ 10:34 AM