Significant numbers already facing ageism claims

City law firm Berwin Leighton Paisner (BLP) quizzed over 50 businesses from a range of sectors including finance, manufacturing, retail and the public sector - collectively employing more than 78,000 workers. More than one in 10 had already received a claim against them.

The Employment Equality (Age) Regulations came into effect last October, making it unlawful to discriminate against workers, employees, job seekers and trainees because of their age.

The regulations apply to all employers, and the scope of the rules includes recruitment, terms and conditions, promotions, transfers, dismissals and training.

BLP claimed that along with Government figures suggesting that around 600 age claims had been made to date, it was clear that age discrimination legislation was having an "immediate impact" on the UK workplace.

The company added that firms could face hefty costs from such claims, with compensation awards for other types of discrimination averaging around £20,000. Awards could extend to six figures for high earning employees.

'Particularly vulnerable'

Rebecca Harding-Hill, a partner at BLP, said: "It is still early days for companies to see the full impact of the new age legislation. However, it is significant that nearly one in ten companies have already received age claims.

"This suggests that employees are aware of the age regulations and are willing to take action against their employer, or former employer, on the basis of the new legislation. Employees' increasingly heightened legal awareness could lead to a dramatic increase in claims."

She added: "Employers are particularly vulnerable with regard to this new area of discrimination law which requires a change in attitude for many. If employers are not on top of the age legislation and all of its ramifications, age claims could result in a significant financial cost for UK businesses."

Almost three quarters of businesses (73%) said that they have already been affected by the new age regulations. However, only 11% of those surveyed felt the new regulations were having a negative impact on their business, with 36% believing they had had a positive affect.

Can't keep up

At the same time, over half (55%) of respondents felt that the UK workplace was "over-regulated" and that it was becoming more costly and time consuming for businesses.

As a consequence of many new laws there was a risk that companies may not be able to keep up with the new legislation and would fail to implement the necessary measures to ensure compliance, said BLP.

Ms Harding-Hill said: "Many of the employers we spoke to felt that age discrimination is yet another piece of cumbersome red tape for them to get their heads around. But there is no room for apathy towards these new laws, and employers must stay ahead of the game."

She added that although ageist treatment could be "objectively justified" by employers, an overwhelming 74% believed they needed additional guidance in this area.

"This is a worrying statistic as it means that companies who have every intention of being legally compliant may be exposed through a lack of clarity surrounding the law," she said.