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Occupational pensions are covered by the regulations, as are employer contributions to personal pensions. However, the regulations generally allow pension schemes to work as they did before.Â
The regulations do not affect state pensions.
Other important points include:
Unusually, both direct and indirect age discrimination can be justified if the treatment or provision, criterion or practice in question is a proportionate means of achieving a legitimate aim, though most employers will find this difficult. This contrasts with other forms of discrimination where usually only indirect discrimination can be justified.
Length of service requirements for employment benefits practices of five years or less enjoy a special exemption and are deemed not to be unlawful age discrimination.
Length of service requirements for employment benefits practices of periods longer than five years may also be justifiable if the employer can show that they have awarded the benefit to reward loyalty, to encourage motivation, or to recognise the experience of a worker.
In 2011, the default retirement age will be reviewed by the Government to consider whether it is still necessary to maintain a default retirement age at 65, or any at all.
Amendments incorporated into the Employment Rights Act 1996 so that dismissal at a justified retirement age (usually 65) in specified circumstances will be a potentially fair reason for dismissal.
In June 1999 the Government published a voluntary Code of Practice Age diversity in employment1 together with implementation guidance and case studies to show how a number of employers have tackled age discrimination. The Code sets out good practice principles to adopt in recruitment, selection, promotion, training and development, redundancy and retirement and reflects the advice given in this factsheet. Some employers took action in advance of the regulations to remove age limits and tackle age discrimination as they realised that there were significant business benefits to be gained by removing bias in employment policy and practice. Currently Acas is the nominated agency to give advice and guidance on age issues and the new Equality and Human Rights Commission (EHRC) will also be working to support (and challenge) employers.Â