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Insurance loophole to the age discrimination rules
Page 18
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New rules are intended to prevent age discrimination, but operators
could still find a way round them. Chris Tindall reports.
A SPECIALIST TRANSPORT lawyer has raised concerns over the likely effectiveness of age discrimination legislation which comes into force next week.
He predicts that some operators will be able to use a loophole to avoid taking on younger drivers.
The regulations, which come into force on 1 October, are designed to prevent employers from recruiting, training, promoting or retiring workers simply on the basis of their age. However, the law allows for 'exceptional circumstances' where discrimination will still be allowed.
Frank Sutcliffe. a partner at legal firm Ford and Warren, thinks that a transport company might get away with refusing to take on younger drivers because they represent a greater risk, which would be reflected in its insurance premiums. "There is the potential there," Sutcliffe explains. "There are additional costs of employing younger workers. But what the employer would have to show is that they have checked out those costs and what those costs are in terms of their business.
"I can't see it being quite so readily available to larger operators. but I could be wrong," he adds. "These arc things that are going to be tested in employment tribunals."
The Road Haulage Association's head of employment, Ruth Pott, says: "Clearly there are insurance implications because insurers base their premiums on risk. Age can be a significant factor. Employers can still say we can't employ you because our insurer can't provide cover'."
• Next week our legal section will include a comprehensive guide to the age discrimination regulations.