Small businesses are risking employment disputes by failing to comply with age discrimination laws that came into force in October, it has been claimed.

Six months on, just 17% of small businesses have adopted recruitment and employment changes in order to adhere to the new regulations, according to a study by employment relations firm Acas.

Respondents said that they had not made changes because they either believed that their organisations already complied or, more worryingly, that the regulations did not apply to their business.

“These results are worrying as they highlight a cost timebomb in smaller companies in terms of potential tribunal cases, because the age laws have not been considered,” said Acas chair Rita Donaghy.

She added: “Age discrimination can affect all employees, young and old and to comply can be very simple and quick.

“We are urging businesses to act now, helping them to put in place policies that minimise the risk of prosecution and to make employment decisions on the basis of talent and skills alone.”

Only a small minority of small businesses (8%) were somewhat or very concerned about the implications of the regulations for their organisation, the survey found.

According to Acas, companies can take simple steps to overcome age bias in the workplace, such as only asking for date of birth on monitoring forms, not job application forms, and avoiding specifying length of experience on recruitment advertisements.

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