Anti-ageism law could lead to reduced redundancy pay

The
introduction of legislation to combat age discrimination in the workplace could
lead to older workers losing redundancy rights.

The
government will send out the proposals for consultation this week and, if
adopted, redundancy payments to staff aged 41 and over will be reduced to one
week’s pay for each year of service completed after reaching 41. Under present
UK law, such employees are entitled to a week-and-a-half for each year of
service once they are 41.

The
change would bring UK legislation in line with age discrimination clauses in
the 2000 EU directive on employment.

The
provisions will make payments equal to employees aged under 41 who are entitled
to one week for every year served if they are made redundant.

Michelle
Mitchell, head of public affairs at the charity Age Concern said the odds were
already stacked against the older worker.

"Many
over-50s find it impossible to get back into the workplace after losing their
jobs and are unable to build up adequate pension contributions", she said.

By Michael Millar

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