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Age discrimination 'timebomb' facing SMEs

Published On 17 April 2007 at 08:49:50

Small business owners are putting themselves at risk of age discrimination problems, according to a new study.

Figures published by Acas, the UK's leading employment relations organisation, found that just 17 per cent of small and medium-sized enterprises (SMEs) had made changes to their employment policies since new age discrimination legislation came into force in October 2006.

In very small companies - those with less than ten members of staff - only six per cent said they had made any changes.

The survey revealed a gap between perceived knowledge of the legislation and its reality. Over two thirds of SME bosses believed they were well informed about discrimination laws, but only 30 per cent managed to give correct answers to questions about the law.

"These results are worrying as they highlight a potential cost timebomb in smaller companies in terms of potential tribunal cases, because the age laws have not been considered," said Acas chair Rita Donaghy.

"We are urging businesses to act now, helping them to put in place policies that minimise the risk of prosecution and to make employment decisions on the basis of talent and skills alone."

 

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