Counting The Cost Of Age Discrimination Legislation

Originally pubilshed in Forward Thinking, August 2007

Make sure you’re in the know about employee rights and your responsibilities.

The new Employment Equality (Age) Regulations 2006 came into force on 1 October 2006 and prohibit discrimination, harassment and victimisation on the grounds of age. Employees now have a statutory right to work until the age of 65.

The new age discrimination rules have forced companies to reassess benefit arrangements and prepare for additional costs. Care is required to manage changes to employee benefits and pension schemes.

Even before the introduction of age discrimination legislation, defined benefit schemes were in deficit. Employers usually have to contribute extra funds to manage the deficit, and any ‘debt’ must be reflected in the balance sheet in accordance with accounting regulations. This can reduce apparent profitability.