February 2008 - Small Business News

Despite age discrimination legislation coming into force in 2006, many employees have still been forced out of their job by employers; leaving businesses potentially liable for fines of over £45million. 

Research from AXA Insurance has found that whilst businesses are improving, 20% of those employees who left work before the legal age of 65 felt pressure from their employer to do so.

Steve Folkard, head of pensions and savings policy at AXA commented: “Despite legislation making it unlawful to discriminate against workers on the grounds of age, our study clearly shows that some employees are still being coerced into early retirement; meaning employers could be leaving themselves dangerously exposed to litigation.

“Employees coming up for retirement need to be aware of their legal rights and exercise these if necessary. Employers should also review their retirement policies and decision making processes to make sure they are protected against both future and retrospective claims. The cost of a successful claim can be significant and will be even higher when legal costs and damage to reputation are taken into account.”

For more information on age issues in work, read our article  Age Discrimination Legislation – A Guide here.