Anti-ageism regulations published

Measures designed to end age discrimination in the workplace have been published by the DTI.

 

Trade and industry secretary Alan Johnson said the moves will ensure over-65s get the same rights to unfair dismissal and redundancy payments as younger workers.

 

As part of the final stage in the implementation the European employment directive, the regulations are due to come into force in October 2006, with parliamentary approval.

 

The legislation would ban all retirement ages below 65, while leaving the age at which people can claim their state pension unaffected.

 

It would also ban age discrimination in terms of recruitment, promotion and training, and remove the current upper age limit for unfair dismissal and redundancy rights.

 

Johnson said: "Individuals should have the choice to carry on working if they want to. This is not about forcing people to work longer, it is about freedom to choose.

 

"Equally, to thrive in a competitive market British business increasingly bases its employment and training decisions on talent not age. Employers know that they cannot afford to ignore the skills of any worker - young or old.

 

"That people need to be able to plan for their future and retirement should not come as an unexpected surprise. The duty for employers to give at least six months notice will help individuals make informed decisions about retiring.

 

"These regulations are an important step forward, ensuring individuals benefit from important new rights and opportunities while allowing business to operate productively and fairly."

 

Reaction

 

Business leaders broadly welcomed the measures, with the CBI pleased with how the consultations had gone.

 

CBI deputy director general John Cridland said: "In a tight labour market, employers want to retain skilled and experienced older staff who are keen to carry on working.

 

"The latest drafting of this landmark legislation for employees will reassure businesses, because it takes account of their need to plan and operate effectively. The new rules set out a clear framework for companies and their employees to follow when planning for retirement."

 

However, shadow industry secretary David Willetts said: "This is not the last word on age discrimination and giving older people the opportunity to carry on working.

 

"Indeed, it seems that Alan Johnson as DTI secretary, does not agree with previous proposals from Alan Johnson, secretary of state for DWP, who pressed for much more than has been announced today.

 

"The government's press release is seriously misleading. It implies that people aged over 65 will have the same rights on unfair dismissal as younger workers.

 

"However, the announcement today makes quite clear that 'retirement will not constitute unfair dismissal if it is on or after 65', so older people can in fact be dismissed in a way younger people cannot," he added.