Employers are leaving themselves open to age discrimination claims with one in five UK employees feeling pressured to retire, a new report has found.
The study, published today by insurance giant AXA, estimates that the cost to UK Plc of such age-related litigation cases in 2007/08 could exceed £45m in collective-compensation costs. This is based on average awards of £8,679 across the 5,250 cases the now defunct DTI has predicted.
The findings come despite the introduction of new legislation in 2006 put in place to protect workers against age discrimination. The Employment Equality (Age) Regulations came into force on October 1 2006 with the goal of protecting those in employment or vocational training from age-biased discrimination or harassment.
The research, which was conducted among 305 employees across 26 countries, also revealed that 60% of British workers retired before the minimum legal age of 65. However, while 80% said that they did so through choice, the remaining 20% claimed to have experienced pressure from their employer.
Steve Folklard, head of pensions and savings policy at AXA had a word of warning for British businesses: “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.”
However this stark warning has come too late for some as an age discrimination claim cost a bar owner £15,000 in compensation earlier this week. The Carlisle Employment Tribunal found that Ronald Davidson was unlawfully sacked from his post at the Globe Tavern in the Cumbrian town of Longtown, where he had been employed for more than six years, three weeks after his 60th birthday in June 2007.
© Crimson Business Ltd. 2008
