Prepare for age law or face big payouts

Hospitality employers must prepare themselves now for autumn's age discrimination legislation or face paying out thousands of pounds in compensation, employment experts have warned.

Richard Smith, employment director at Corner Consulting, said that the Employment Equality (Age) Regulations 2006, effective from 1 October, was the most significant piece of UK legislation since the 1976 Race Relations Act. "Age affects every employment decision, from promotion to redundancy. The pool of potential claimants is huge," he said.

Speaking at Springboard's Age Awareness Conference in London last week, Smith predicted the legislation would lead to 20,000 more tribunals a year, with average payouts hitting £20,000.

He also warned employers that the burden of proof would now rest with them rather than the staff member. He said: "Employers will need to keep detailed records for each employment decision they take, to show their practices are beyond reproach."

A spokesman for the Forum of Private Business criticised the Government's handling of the new legislation. "These are sweeping changes," he said, "but many small firms have not realised the true implications, because the Government has failed to get the message out."

By Chris Druce

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