BUSINESSES NOT PREPARED FOR NEW
AGE RULES - smallest firms set for biggest shock
Proposed changes to employment regulations that
would prevent employers setting retirement ages for staff and remove
the upper age limit for statutory redundancy pay are likely to come
as a big surprise to British businesses, according to new research
published today (Thursday 29th January) by Manpower, the leading
recruiter of permanent, temporary and contract workforces.
The research* found that 61% of employers were either unaware of
or doing nothing to prepare for the impact of the legislation, the
European ‘Equal Treatment Framework Directive’, on which
the UK Government is currently consulting with a view to bringing
new rules on age discrimination into force in 2006. The Department
for Trade and Industry has completed a consultation on the draft
legislation and is planning further consultation in the first half
of this year.
Ruth Hounslow, Head of Public Affairs at Manpower, says: “Manpower
welcomes moves to increase access to employment for all, regardless
of age or other barrier, and so widen the pool of labour for our
customers. These new measures to prevent employers discriminating
on the grounds of age in recruitment, reward, redundancy and retirement
will be in force in the UK in a little over two years time. Employers
need to know what’s going to change and to start preparing
now. At Manpower, we are already working with our national and local
customers to ensure a smooth transition to the new regulations,
and maximum opportunities for our employees.”
Other key issues for UK business under the proposals include the
extension of eligibility to claim unfair dismissal to all employees
regardless of age, and the outlawing of any recruitment, selection
or promotion on the basis of age unless the employer can justify
doing so.
Smaller firms in particular are likely to be surprised by the rule
change: 77% of firms with fewer than 10 employees and 65% of firms
with 10-49 employees, said they were unaware of or unprepared for
the legislation.
Despite, or perhaps because of, this lack of awareness of the proposed
changes, 78% of all employers said they were very confident that
they do not discriminate with regards to age factors. However, over
half (53%) of all firms who provide health insurance to staff felt
that any increase or removal of the retirement age would result
in greater costs to their business in the form of higher premiums.
The utilities sector is best prepared for the legislation with 53%
of electricity, gas and water suppliers already preparing for the
change, while the biggest shock waves are likely to be felt in Wales
where fewer than one in five (18%) of organisations saying they
are preparing for the new legislation.
ENDS
* The research was conducted by NOP who surveyed 2000 employers
across the UK. Further details of the research and a copy of the
latest edition of Manpower’s employment legislation are available
from the Manpower press office (020 8870 2214) or http://www.manpower.co.uk/news/legislation/305736_Emp_Leg_Brochure_III.pdf
For further information, please contact the Manpower Press Office
on 020 8870 2214. Or you can e-mail us by selecting Press
Office from the Contact
Us page.
