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Patrick Grattan, Chief Executive, TAEN - The Age and Employment Network Sept 2006. IDS © TAEN TAEN – Experts on Age and Employment • • • • Committed to promoting an effective job market which works for people in mid and later life, for employers and for the economy. 250 member organisations. (2007 membership: £200) Communicating expertise. Creating contacts & networks. Influencing and advancing public policy. Age and Employment: a broad agenda • • • • • • • Changing life stages. Stereotypes and barriers. Individual career management. Employer career management. Work & learning & health. Pensions, savings and retirement. Role of Government. Legislation. Working lives: the demographic context Starting work later; debt: 21 Children + mortgages later: 30+ Life expectancy rising: 80+ Fewer children: 1.8 Retiring earlier: 63 Life Stages: “good” work, “bad” work. Employment rates: a success story 1997-2006 employment record: Under 50 +0.6m Over 50 +1.3m 25-49 50-SPA Govt aim, working age Requires: 82% 71% 80% (75% now) +1m over 50s in work +1m welfare to work Success story but – age barriers to tackle (1) Employers • Quality of work opportunities: few occupations and business sectors • Employer attitudes / myths & stereotypes • Corporate hierarchies and culture Government • Age a low priority • Limited pension reform • Public sector employment ‘Welfare to Work: Tackling the Barriers to the Employment of Older Workers’ National Audit Office : 2004. Am I still needed? TAEN/CeGS 2005; DWP Research Age barriers to tackle (2) Employees/jobseekers • Fewer qualifications and basic skills but much experience • Absences from the workforce • Personal aspirations and confidence • Caring responsibilities • Health condition or disability ‘Welfare to Work: Tackling the Barriers to the Employment of Older Workers’ National Audit Office : 2004. Am I still needed? TAEN/CeGS 2005; DWP Research Drivers of change • • • • • • • • • • Fairness and opportunity Careers of women Retirement economics: pension values Death of final salary pensions Longevity increases Health improvements Skills needs Reversing benefit dependency The EU Lisbon Agenda Legislation Government action • • • • • • • • • Employment target 80% Legislation. Lifelong advice services. Lifelong learning services. Public health – prevention policies. Incentives to work/save. Welfare to Work reform. Pensions: saving incentives Public sector employment. 25%. Age regulations: exemptions for employers 1. Any age-based action which can be ‘objectively justified’ as a proportionate way of achieving a ‘legitimate aim’. – • • • [Health & Safety, employment/succession planning, payback on training costs, reasonable period prior to retirement age, minimum levels of experience / seniority.] Employer action under a ‘public policy’ exemption. Genuine Occupational Requirements Positive Action Age Regulations Exemptions for Government 1. 2. 3. 4. 5. 6. 7. 8. National Default Retirement Age of 65. Service related pay and benefits National Minimum Wage (3 age bands) Statutory Redundancy Pay (3 age bands) State pensions. Age-based pension rules. Other statutory age based rules. Age limits on Vocational Training funding Age Regulations: The hot spots (1) 1. Fixed Retirement Ages and unfair dismissal: • • • defining employers normal retirement age. Candidates for under 65 NRAs following the procedure. giving reasons. 2. Young workers: • • • • experience thresholds funding of training minimum wages health and safety Age Regulations: The hot spots (2) 3. Proving discrimination in recruitment and workplace decisions. The evidence. Comparator age pools 4. Legitimate aims: Succession planning; job blocking; business costs. 5. Length of service benefits over 5 years 6. Redundancy schemes not matching the state minimum. Age Regulations: The hot spots (3) 7. Scope for positive action 8. Occupational pensions 9. Harassment 10 Recruitment agencies Age and Employment. Calendar Nov 05 Feb 06 Mar 06 Apr 06 May 06 Jun 06 Oct 06 Dec 06 2007 2007 2011 Report of the Pensions Commission Equality Act (CEHR) Age Regulations through Parliament Pension reforms/simplification Health, Work and Wellbeing Programme Welfare Reform Bill tabled Age legislation in force Leitch Review on Skills Equality Reviews Commission on Equality and Human Rights Review of Default Retirement Age Email: [email protected] Web: www.taen.org.uk © TAEN 2006 supported by