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Does the National Minimum Wage fall foul of age .....
Does the National Minimum Wage fall foul of age discrimination laws?
The Employers Forum on Age is calling for the National Minimum Wage (NMW) band for younger workers to be brought into line with the adult rate, as the current arrangement constitutes age discrimination.
The Government announced last week that the NMW will rise from £5.35 to £5.52 an hour for adults from October. The wage for 1821 year olds will increase from £4.45 to £4.60, and from £3.30 to £3.40 for 1617 year olds.
Sam Mercer, Director of The Employers Forum on Age (EFA) comments:
"We are frustrated by the refusal to address the fact that under the current bands, 1821 year olds are paid less, simply because of their age and irrespective of their capabilities or responsibilities.
"We believe this constitutes direct age discrimination and is sending out completely the wrong message to employers about the consequence of making decisions based on age in the workplace. While we support the existence of the youth rate for 1617 year olds due to the statutory restrictions on the work they can undertake, a development rate for inexperienced workers should not be based on age and should only be applied for a short term."
The EFA is actively lobbying the Government on the issue of minimum wage age bands. An Early Day Motion has been tabled and currently has 88 signatures representing cross-party support.
Mercer continues:
"We are calling on the Government to equalise all minimum wage standards for those over 18. Age discrimination in employment became illegal on 1 October last year the current argument from the Government that employers might potentially avoid taking on younger workers if they had to pay them the same amount as workers over 21 is simply reinforcing the discriminatory practices that the legislation was designed to eradicate."
The Employment Equality (Age) Regulations 2006 came into force on 1 October 2006.
The main provisions of the legislation:
ban age discrimination in terms of recruitment, promotion and training;
ban unjustified retirement ages of below 65;
remove the current age limit for unfair dismissal and redundancy rights;
introduce a right for employees to request working beyond retirement age and a duty on employers to consider that request; and
require employers to give at least six months notice to employees about their intended retirement date so that individuals can plan better for retirement, and be confident that "retirement" is not being used as cover for unfair dismissal.
Before the Regulations came into force British Chambers of Commerce (BCC) also warned that the current minimum wage system, under which employers can pay workers under the age of 21 less than older staff, could be considered discriminatory under the new rules.
BCC spokesman Olly Scott commented:
"The Government's own minimum wage law discriminates against people on the grounds of age.
"If this were the subject of a legal challenge, based on the new age law, the Government may put the minimum wage rates of the under 21s up to the same level as the over 21s."
The BCC claims that such a move would lead to job losses and make employers less likely to hire younger workers.
Despite these protests and concerns the minimum wage is, currently, not considered to breach laws age discrimination. The position will remain this way until the Government changes the law or an employee who feels they have been discriminated against brings a legal challenge.
