Tuesday, February 08, 2005

Old age – New rules

The Department of Trade and Industry has decided that, for the first time, employees over the age of 65 will be able to claim redundancy pay, according to press reports.

The full details of the Age Discrimination legislation which will come into force in 2006 are yet to be announced. It therefore remains to be seen whether this is a "sop" to employees or an indication that employers can expect the overall tone of the provisions to be onerous (and therefore potentially costly.)

For example it is not yet clear whether the size of redundancy payments will be affected. At present employees receive 1 ½ weeks' redundancy pay for each full year worked over the age of 41, but there have been suggestions that this will be reduced to 1 week's pay across the board, rather than just for service between the ages of 22 and 41 as at present.

For more details see:

http://news.ft.com/cms/s/7ec5de2c-78ad-11d9-9961-00000e2511c8.html