Age discrimination became illegal in October 2006 but, other than the debate on the "default" retirement age of 65, there has been little publicity about the impact of this law on employers; but employers should not forget the law is there! A recent employment tribunal case highlights the perils employers face for age discrimination and for failing to follow basic policies and procedures when dealing with complaints from employees.
In the case, a worker aged 17 was dismissed within a few hours of starting work for the first time, because the employer said it was company policy not to employ people aged under 18. Although the employee had worked for the company for less than a day, he was awarded compensation totalling £16,000.
The case highlights how important it is that employers understand the implications of seemingly minor rules, such as the "over 18s only" rule. It also highlights the importance of following the correct procedures when staff raise complaints, and shows that all job applicants and staff with less than one year's service have certain rights which can be costly for the employer to ignore.
What were the facts of the case?
The employee was taken on by the employer to work in telesales after posting his c.v. on the internet. The employer interviewed him twice, without checking his age, and the employee started work. The employer then allowed the employee to start work without checking the employee's entitlement to work in the UK – which was not an issue in this case, but which could have left the employer open to a fine of up to £10,000 if the employee had not been entitled to work in the UK.
The employee was dismissed on his first day of work because the employer then said that it was company policy not to hire staff below age 18. The employer gave two reasons for this at the employment tribunal. Firstly, due to health and safety – because the employee might have to work until 8.00 pm and it might be dangerous for him to travel home at that time – and secondly, because, unlike workers aged 18 or over, he would be restricted to a 40 hour working week, and the rest of the staff might have to work longer to meet their targets and so be resentful of him.
What did the employment tribunal decide?
The employment tribunal found that the reasons given by the employer in an attempt to justify the age discrimination of refusing employment to under 18s were not sufficient, and awarded the claimant £4,000 for injury to his feelings.
The employer, however, made things much worse for itself by refusing to deal with the matter properly when the employee complained. Because the employee was claiming unlawful discrimination, the rule about needing one year's service before being able to claim unfair dismissal did not apply. In addition, the company was obliged under the statutory dispute resolution procedures to deal properly with grievances, which it failed to do, and the tribunal used its powers to increase compensation by 50%. The claimant was therefore awarded £12,000 for unfair dismissal; approximately a year's wages.
What does the case show?
The case reminds us of three things:
Finally, the best advice is always to take advice. The Mentor Employment Law team is available to help keep you out of trouble.