1. We’re here for you. Age Legislation - An Update Legislation to prevent discrimination on the grounds of age was introduced into the UK in October 2006. At best some of the press coverage at the time was misleading and confusing. Some was just inaccurate. It is not surprising therefore that the Personnel and Administration Directorate has received a lot of queries about what this means locally and how the County Council has decided to exercise its discretion in a number of areas allowed by The Employment Equality (Age) Regulations 2006. This presentation will hopefully provide some answers within the limited context of employment in the services of Northumberland County Council. Next

2. We’re here for you. Overview The latest projections by the Office of National Statistics suggest that by 2020 nearly a third of the national workforce will be over 50. Businesses increasingly need to recognise the benefits of age diversity in the workplace. Treating staff fairly and recognising individual talents and needs is not just the right thing to do, but makes good business sense as well. In summary the legislation introduces the following provisions: Next

3. We’re here for you. Overview (continued) The upper age limit for unfair dismissal and redundancy rights has been removed so those over 65 now can claim unfair dismissal. Employees will have a statutory right to request to work beyond compulsory retirement, which employers will have a duty to consider. Employers must give workers at least six months’ notice of their retirement date. Employers, managers and trustees of occupational pension schemes, providers of vocational training including further and higher education institutions, and private training companies all have new responsibilities. Trade unions, professional associations and employers’ organisations will also have new obligations, not only as employers but in relation to their membership too. The law recognises that differences of treatment on the grounds of age can sometimes be justified. For example, it may be necessary to make special provisions for younger or older workers in order to protect their safety and welfare. For more detail click on next for a quick guide. Next

4. We’re here for you. Quick Guide to the Age Regulations Use the buttons to find out more about each topic or leave the presentation. Recruitment Rewards and Service Benefits Vocational Training Retirement Redundancy Payments Pensions Objective Justification More Exit More If you have any questions or queries arising from this presentation please contact the Advice & Development Group on 01670 533722

5. We’re here for you. Retirement Employers are allowed to operate a normal retirement age provided it is not less than 65. The County Council has decide to retain 65 as the normal retirement age. If the employers normal retirement age is below 65 it must be objectively justified. (See separate slide) Employers must have a fair reason to terminate an employee’s service before 65. Retirement under 65 is not a fair reason. Employers should notify an employee not more than one year and not less than six months before the date of retirement. Failure to notify up to two weeks before the intended retirement date will make the dismissal automatically unfair. Employee must make their request to continue working at least three months before the proposed retirement date. Employer must consider all requests not to retire. Where possible the employer must meet the employee to discuss their request and must inform them of their decision as soon as is reasonable. The employee may appeal against the decision. If this happens an appeal meeting should be held as soon as is reasonable. An appeal can be made if the employer refuses the request or decides to continue the employment for a shorter period than requested. Must repeat the process each time an individual nears the end of an agreed extension, unless the extension is less than six months. Menu

6. We’re here for you. Rewards and service benefits Employers use pay and benefits to motivate staff, reward loyalty and recognise experience. The new regulations therefore allow employers to use length of service as criteria provided the period used does not exceed five years. Benefits related to age are therefore likely to be discriminatory while those related to service not. It is therefore permissible for local authority employers to; –Grant extra holidays for five years service. –Grant additional sick leave after five years service. Employers can use more than five years if they can justify their action. (See separate slide.) Northumberland will retain the Long Service Award scheme. Length of service should be the same for full-time or part-time workers. Employers can take into account periods of absence, if reasonable to do so. An employee who feels that the benefits structure is discriminatory has a right to complain to an employment tribunal. Menu

7. We’re here for you. Vocational Training Under the new Regulations training providers are not able to set age limits for entry to training, unless they can show there is a real need to apply such limits which can be objectively justified. (See separate slide.) Training providers include employers, further, or higher education institutions in receipt of public funds, private, public or voluntary sector training bodies; and adult education programmes. Schools are specifically excluded as a provider but included as an employer. Age limits on available funding are a factor for use in objective justification. Menu

8. We’re here for you. Redundancy payments The lower and upper age limits in the statutory redundancy payments scheme have been removed After two years continuous service those under 18 and over 65 have the same rights to redundancy payments. The taper at age 64 has also been removed so entitlements will not be reduced. The current age bands shall remain. Employers following the statutory scheme are exempt from age discrimination claims, whereas an employer who significantly departs from the statutory scheme is not. To avoid young people facing redundancy the national minimum wage has also been exempted from the regulations. Menu

9. We’re here for you. Pensions The regulations do not apply to state pensions. Most age-related rules applying to pensions schemes are largely exempt so schemes can continue to operate by and large as they do now. If there is no exemption for a particular rule an employer may seek to justify it on objective grounds or remove it. An exemption allows schemes to be closed to new employees, which allows an employer to operate more than one scheme. Age-based contributions to pension schemes can continue if they are aimed at producing an equal outcome in pension benefits. Employers can also continue to apply minimum and maximum age limits for membership to pension schemes. Employers will not be able to set a maximum age for contributions to a pension scheme, but will be able to set a maximum number of years of pensionable service. For more detailed information about recent changes to the Local Government Pension Scheme contact the Pensions Section on ?? Menu

10. We’re here for you. Recruitment Recruitment, selection or promotion decisions based on age are unlawful unless objectively justified or there is a genuine occupational requirement. Objective justification must be proportionate and in pursuit of a legitimate aim. (See separate slide.) Very few instances where a genuine occupational requirement will apply. Customer preference cited as unacceptable. Acting and modelling clothes for the youth or older markets are quoted permissible examples. Job descriptions and person specifications should not include any time-related requirements. For example avoid asking for so ‘many years experience.’ Degree + 10 years experience = not less than 30. Advertise openly and widely. Beware of hidden messages in the words or pictures. Expressions such as ‘A mature outlook’ or ‘We are a young, dynamic organisation’ might convince unsuccessful candidates they received less favourable treatment. Ensure any agency you use does the same and that you are happy with their filtering and selection procedures. As the County Council is exercising its discretion under the regulations to continue to apply a contractual retirement age of 65 it has decided to leave the date of birth on the application form. Dates relating to education, qualifications and employment history inevitably provide an age context with or without the date of birth. Next

11. We’re here for you. Advertising & Selection Concentrate upon being specific about the knowledge, skills, ability and competencies that are needed to do the work. Are the criteria on a person specification really essential? Could you persuade a tribunal why: –only a graduate can do the job? –someone with 10 years experience can do the job whereas someone with 9 could not? –why 5 GCSE and not 4 or why grade C and not D? –is GCSE Maths and English a fair reflection of numeracy and literacy or is it just a way of reducing the size of the applicant pool? Be precise about what experience the candidate must have and relate it to the job description. Having recent and relevant experience is usually more important than the length. Menu

12. We’re here for you. Objective Justification The objective justification test, for either direct or indirect discrimination, must be a proportionate way of achieving a legitimate aim. Proportionate means that the discriminatory effect of any age-based practice is significantly outweighed by the importance and benefits of its legitimate aim, and the employer has no reasonable alternative. If the legitimate aim can be achieved by less, or non-discriminatory means, then these must take precedence. Legitimate aims must correspond with a reasonable need. Economic/business needs may be legitimate aims. Arguing that it’s more expensive not to discriminate is not a legitimate aim. Examples of a legitimate aim could be: the vocational integration of individuals of a particular age; the particular training requirements of the job; or the need for a reasonable period of employment before retirement. However, it’s for the employer to show that the aim is valid. The legitimate aim cannot relate to age discrimination itself, e.g. young employees give a fashion business a young image. Ultimately though, the court will decide what constitutes a legitimate aim. In practice, to pass the test of objective justification, the employer will have to provide evidence if the age-based practice is challenged. An employer’s assertions is not sufficient. Menu