Subscribe to our weekly newsletters
Subscribe to newsletter

 

Editor's Note:  AXA UK provide:-

Age discrimination in the workplaceAge discrimination in the workplace
 

Request Information

Home
Include Article
Advertise
 

 

 
 

Links
Request Information
Terms of use
Contact

 

home

   
 

AXA UK - Loophole leaves UK plc at risk of £60m backdated unfair dismissal claims in the next 12 months

Leading insurer AXA today warns that UK employers could be sued to the tune of £60m in backdated discrimination claims for forcing people to retire at the age of 65. Employers who do so are acting within the law as it currently stands, however a ruling awaited by the European Court of Justice (ECJ) could leave them facing expensive compensation claims in the future.
The background
The National Council on Aging (NCA) has persuaded the High Court to ask the ECJ if the new UK Age Discrimination Regulations, effective from 1 October 2006, have been implemented properly
The NCA’s concern is that these Regulations allow employers to retire employees at the age of 65 even if they wish to continue working. So, while the new law permits employees to appeal against forced retirement, it allows employers to retire them compulsorily without having to justify the decision. This means that even under the new Age Discrimination Regulations enforced retirement at 65 is still legal - it just takes longer.
The worry is that if the European Court makes a ruling in favour of the NCA, British Businesses could be at risk from unfair dismissal claims dating back to 1 October 2006 – the date the Regulations came into force. Disgruntled employees can ‘bank’ unfair dismissal claim’s as long as they are filed within three months of the date of their retirement. These claims will then be frozen pending the ECJ’s decision which could take between 12 and 24 months.
If the ECJ dismisses the NCA’s claim then the 'banked' claims will eventually be dismissed too. However, if the ECJ rules that the Regulations are unfair, it could involve compensation awards for all claimants.
The cost
The cost to UK PLC would be hefty. International retirement research to be released by AXA next week has found that of those in retirement now, 28% said it was imposed by their employer. The DTI predicts 8,000 unfair dismissal claims per year and according to the Employment Tribunal Service Annual Report 05/06 the average compensation awarded to a successful claimant is £8,679. This means that if British businesses continue to force retirement and the ECJ rule that the Regulations are unfair, they could face compensation claims in the region of £60m. Discrimination claims cost even more, as there is no cap on the potential awards.
The experts comment
Steve Folkard, Head of Pensions and Savings Policy at AXA, says: “This will be worrying news to employers. The real cost of a successful claim will be even higher when legal costs and damage to reputation are taken into account.
“Employers had hoped to avoid having to justify their reasons for retiring employees at 65. However a ruling by the ECJ could leave them under scrutiny. Employers should review their retirement policies and decision making processes now to protect against retrospective claims.”
Sue Ashtiany, Employment Partner at Nabarro Nathanson, concludes: “Although it is difficult to predict the outcome of this case employers must be aware that maintaining a compulsory, fixed retirement age could lead to a long period of uncertainty and a large number of potential discrimination claims. In an attempt to avoid future claims, some employers are now considering abandoning a compulsory retirement age altogether whilst others have already done so.
“Employers are advised to review cases of compulsory retirement dating back to last October to identify and be aware of any potential claimants.”
 

Email: JemmaP@lansons.com


AXA UK Age discrimination in the workplace News 290107

ISG Totty Construction Services Specialists New Builds News 290107

Sunderland City Council Swimming pool Sunderland News 290107

MITA UK Ltd Cable Trays Ladders Datatray News 290107

MITA UK Ltd Cable Trays Ladders Datatray News 290107-2

Wetroom Innovations wet room drainage News 290107

Chartered Institute of Building Building Control and Standards News 290107

Honeywell International Valves Pipework Systems Motorised Valves News 290107

Cummins Ltd Construction industry diesel power engines News 300107

Ancon Building Products Masonry Support Systems Wall Ties News 300107

Cummins Ltd Diesel engines industrial diesel power News 300107

Wickens Engineering Industrial Storage News 300107

Fläkt Woods Ltd Air Handling Units Fan Coils News 010207

CODA Architect Construction industry architect News 310107

Urban Engineering Shelter canopy manufacturer News 310107

WS Atkins plc Architecture engineering project management services News 310107

Cummins Tier Industrial engine construction industry News 310107

Cummins Industrial engine construction industry News 310107-2

ISG Totty Construction Services Specialists New Builds News 010207

ISG InteriorExterior Interior exterior refurbishment specialist News 010207

Electro Mechanical Ltd Precision motors linear actuators supplier News 010207

Lafarge Plasterboard Acoustic plasterboard decorative drywall News 010207

Thomas Pink Store refurbishment shop refit News 020207

Colt International Ltd Smoke control climate control systems News 020207

Toshiba Air Conditioning Air conditioning heating systems News 020207

Joint Contracts Tribunal Joint Contracts Tribunal PR News 050207

Honeywell International Valves Pipework Systems Motorised Valves News 050207

Airedale Energy efficient air conditioning chillers News 050207

Klaxon Signals Visual audio fire alarms News 050207

WindowMaster Natural ventilation intelligent automated windows News 050207

ISG Jackson Construction Services Specialists New Builds News 050207

Icopal Systems Roofing fall protection systems News 050207

Treetops Development Company City dwellings property developer News 050207

Marley Eternit Roofing Clay Tiles Concerete Tiles News 050207

Twyford Bathrooms Bathroom sanitaryware specification News 050207

Wernick Buildings Bathroom sanitaryware specification News 050207

Bachy Soletanche Geotechnical Specialists Structural Retaining Walls News 050207

Hawkins Brown Construction Architects and Developers News 050207

Chartered Institute of Building Conservation, Mainenance and Refurbishment News 070207

Johnson & Starley Ltd Mechanical ventilation heat recovery News 070207

The Joint Contracts Tribunal Joint Contracts Tribunal 070207-2

Holyrood Communications housing future conference scotland News 070207

Honeywell International Valves Pipework Systems Motorised Valves News 070207

ISG Totty Building Construction Services Specialists New Builds News 070207

Bosch Security Systems Video Recording Manager Easy Series News 070207

Bosch Security Systems Video Recording Manager Abacus Evolution News 070207-2

CABE Building design review service News 080207

Bachy Soletanche Geotechnical Specialists Structural Retaining Walls News 080207

Oracle Storage Systems Mobile shelving storage systems News 080207

Urban Engineering Design youth shelter installation News 080208

SAS International Ceiling Systems ceiling panels tiles News 080207

British Harlequin Home dance sprung floor News 090207

Schneider Electric Ltd Low Voltage Switchgear News 090207

C & E Scaffolding Secure scaffold steel purlins News 090207

Wavin Plastics Drainage Underground pipesducting Underfloor Heating News 090207

Wavin Plastics Drainage Underground pipesducting Rainwater Disposal News 090207-2

Panasonic UK Laptop notebook construction industry News 090207

Arundel Jones Associates LLP Registered in England and Wales No. OC330189
Hill Farm, Linton Hill, Maidstone, Kent ME 17 4AL
Tel : 01622 745333 email
copyright all rights reserved

News Categories : Age discrimination in the workplace