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Towards age equality

The European Directive on age equality

Dr David McConnell, Policy Officer with Age Concern Northern Ireland, looks at the rationale for and implications of new legislation outlawing age discrimination in employment and education, a development which has been described as the biggest change since fair employment.

 

From October 2006, discrimination on grounds of age in employment and vocational training is illegal. The origins of this legislation are four-fold:

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Following the rise of the far right in Austria, the EU moved rapidly to introduce anti-discrimination legislation on race and ethnicity. Other grounds were then able to benefit from this legislative climate.

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The population of Western Europe is ageing. There will be an increasing number of older people and a corresponding decrease in the number of young people. This has led to scaremongering about the cost of such an ‘age quake’ and a realisation that retaining people in paid employment for longer will help to address the issue.

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It is estimated that age discrimination costs the UK economy anything from £16-£31 billion each year and given the ageing population this is increasingly seen as a luxury the economy can no longer afford. It has also been demonstrated that retaining older employees is good for business. An older workforce ‘offers maturity, commitment and knowledge’, often reflects the customer base, creates a positive image, and increases customer satisfaction, profits and productivity.

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There has been increasing recognition that as anti-discrimination legislation has been extended to cover other grounds it is unsustainable to continue to permit discrimination on grounds of age. In fact, it is just plain wrong.The regulations cover all employers, private and public sector vocational training providers, trade unions and employer organisations and the trustees and managers of pension schemes (although most aspects of pensions are exempted). They apply to direct discrimination, indirect discrimination and harassment and all aspects of employment, including recruitment, selection, promotion and retirement.

Direct discrimination on grounds of age will not, however, be unlawful in certain narrowly defined circumstances. If, for example, an employer can ‘objectively justify’ direct discrimination this will not contravene the Directive. Some people have given as an example setting a retirement age below the new ‘default retirement age’ of 65. Such a policy must itself contribute to a legitimate aim (eg retiring someone such as an airline pilot on grounds of public safety), the discrimination involved must be outweighed by the benefits and there must be no reasonable alternative. Continuing the example of airline pilots, if it is possible to individually assess their competence, it may be difficult to apply a blanket age for retirement

The legislation also allows direct discrimination if there are ‘Genuine Occupational Requirements’ (GOR). The example often given here relates to acting, with the need for roles to be played by people of a certain age. Employers need to be careful, however that they do not use proxies for age, such as physical capacity, health or immaturity, based on negative stereotypes which will not constitute a genuine substitute for a GOR. There are also exemptions in the area of wages and conditions of employment. The differential minimum wage based on age will remain legal, as will salary scales and rewarding such things as loyalty within a five year period.

As indicated above, a new ‘default retirement age’ is being introduced. This will mean it will be illegal to forcibly retire an employee below the age of 65 in the absence of objective justification and in future employers will have to adhere to a timetable notifying people of their impending retirement and of their right to request to stay on (although employers must seriously consider this, they do not have to agree to the request). The upper age limits on redundancy payments and unfair dismissal are being removed but the basis of the calculation on the level of redundancy payments based on age will remain. The point needs to be made, however, that while the government has exempted certain practices this is not necessarily the end of the story. These provisions can, and are already being, challenged through domestic and European Courts.

This legislation has been described as the biggest change since fair employment. Conferences and seminars have already taken place to inform and advise employers. There will be an awareness raising campaign by the Equality Commission and a further series of advisory sessions for employers. Despite this, it is likely that only when a high profile case of age discrimination makes headlines will minds be truly focused on the responsibilities and protection the regulations afford.

© Law Centre (NI) 2006

 

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Last Modified: 16 July 2008