fighting for private businesses since 1977

1
Age Discrimination update on government
policies and how smaller firms are responding
Victoria Carson Campaigns Manager Forum of
Private Business (FPB)
Tuesday 01 May 2007
2
Agenda

• The Forum of Private Business
• The regulation - information provision and costs
  to smaller firms
• Smaller firm response to an ageing workforce

3
The FPB

• FPB represents 25,000 privately owned businesses
  in the UK
• Together those 25,000 businesses represent
  600,000 employees
• We are a non party political organisation

4
Our mission statement

• The Forum of Private Business fights for the fair
  treatment of private businesses by
  decision-makers and supports the profitable
  growth of members

5
Age Discrimination the demographic

• Aging population
• Projected future age of the workforce
• Rise in regulations

6
Age Discrimination the regulation

• Scope of the regulation
• Information provision to businesses
• Costs for smaller employers
• Impact

7
Scope

• Applies to recruitment, promotion and training
• No unjustified retirement ages of below 65
• Removes the upper age limit for unfair dismissal
  and redundancy rights
• Removes age limits for Statutory Sick Pay,
  Statutory Maternity Pay, and Statutory Paternity
  Pay

8
Information provision

• Provision of information from Government
• early promises to publish age regulations early
  in 2004, giving employers at least two years to
  prepare, not adhered to
• Business friendly guidance is crucial, but
  lacking
• Government guidance was complex. Smaller
  businesses rely heavily on advice from the
  providers of relevant employee benefit schemes.
  This was thought to be lacking

9
Costs
10
Small firm response

• Dangerous wait and see approach
• As a result of the lack of useable information
  many businesses are taking a wait and see
  approach. Failure to comply could result in high
  costs or closure, however many businesses are
  unsure what to do and are waiting for case law to
  point the way forward

11
Small firm response

• Pensions
• Specifically our members have reported changes
  to their pension schemes. In particular to cover
  employees under 25 years of age
• Recruitment
• Restrictions to recruitment advertising have
  made it difficult for the smaller employer to
  recruit effectively
• Healthcare
• We do not have data on this yet but members are
  likely to incur the cost of providing health
  insurance to older employees
• Retirement age and policies
• Almost a third of organisations already have no
  mandatory retirement age (CIPD Oct 2005) this
  growth in flexible retirement policies may be
  adversely affected if they now have to introduce
  a default age and new processes

12
Conclusion
there is a danger that Information provision
regarding employee benefits packages is essential
for smaller businesses to cope with the
changes By imposing minimum standards in this
manner, it can foster a box ticking culture
rather than a diversity culture Tribunal claims
may increase resulting in increased costs all
round Businesses may fear the recruitment
process/employing in case they step out of
line
13
The Forum of Private Business (FPB)

• The FPB fights for fair treatment of private
  businesses by decision-makers and supports the
  profitable growth of members.
• Victoria.carson_at_fpb.org
• www.fpb.org