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Age discrimination threat to minimum wage laws

29 Sep 06

Economic experts fear new laws will lead to job losses

A business group has warned that the new anti-age discrimination laws due to be brought in on Sunday could be a threat to the minimum wage rules.

Because workers under 21 can currently be paid less than older colleagues, the British Chamber of Commerce (BCC) fears that this will be discriminatory under the new laws.

The Employment Equality (Age) Regulations come into effect on 1 October, allowing the tens of thousands of workers who are fit and healthy to continue working past the age of 65. The new rules will affect almost every employer in the UK and will prohibit direct and indirect age discrimination.

Denying people the right to request working beyond 65, advertising jobs in publications aimed at young people and describing posts as suitable only for school-leavers are among the actions which may be illegal under the new act.

Asking for candidates’ date of birth on application forms will also be frowned upon.

The Trade and Industry Secretary, Alastair Darling, said it would take time before employers and workers were fully aware of the legislation and its effects.

The minimum wage for those over 21 is due to increase on 1 October also – rising by 35p to £5.35 an hour. Workers aged 18-21 will see their pay increase by 20p to £4.45 an hour and those aged 16 and 17 get a rise of 30p to £3.30 an hour.

However, economic experts have warned that increasing hourly rates for under 21’s will lead to job losses and make firms less likely to hire young people.

Olly Scott from the BCC said the government’s own minimum wage law discriminated against people of different ages, and Patrick Grattan of The Age Employment Network added that the minimum wage law could be challenged in court.