Government plans age discrimination crackdown

The Government has unveiled new proposals to crackdown on age discrimination in the workplace.

Trade and Industry Secretary Patricia Hewitt and Work and Pensions Secretary Alan Johnson said that the proposals were a key part of the European Employment Directive, prohibiting age discrimination in employment and vocational training, which the Government is committed to implementing by 2006.

Patricia 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.

The Minister said that the legislation is not about forcing people to work longer although there is no statutory compulsory retirement age.

She said: "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."

Following a consultation last year, the Government has concluded that legislation should set a default retirement age of 65 and create a right for employees to request working beyond a compulsory retirement age, which employers will have a duty to consider.

The Government proposes to "loosely monitor" retirement age, subjecting it to formal review five years from implementation.

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.

(SP)