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Age law threat to UK minimum wage Age law threat to UK minimum wage
(30 minutes later)
A law banning age discrimination at work from 1 October could endanger the current minimum wage system, a business group has warned. Laws being introduced on October 1 which ban age discrimination at work, could endanger the minimum wage system, a business group has warned.
The British Chamber of Commerce (BCC) said that under the minimum wage people under age 21 could be paid less than older staff. Under the current pay scheme, workers aged under 21 can be paid less than their older colleagues.
The BCC said that this could be considered discriminatory and may be open to legal challenge. But the British Chamber of Commerce (BCC) said this may be considered discriminatory and be open to legal challenge under the new legislation. If firms had to pay under-21s more, job losses would follow, the BCC argued.
If firms had to pay under-21s more job losses would follow, the BCC argued.
DiscriminationDiscrimination
The government's own minimum wage law discriminates against people on the grounds of age, they are in a pickle Olly Scott, BCC spokesman Quick guide: Age Discrimination The government's own minimum wage law discriminates against people on the grounds of age, they are in a pickle Olly Scott, BCC spokesman Quick guide: Age Discrimination
From 1 October, the minimum wage for people over 21 rises 35p to £5.35 an hour.From 1 October, the minimum wage for people over 21 rises 35p to £5.35 an hour.
Likewise, the rate for workers aged 18-21 will rise by 20p to £4.45 an hour, while workers aged 16 and 17 will get a 30p rise to £3.30 an hour.Likewise, the rate for workers aged 18-21 will rise by 20p to £4.45 an hour, while workers aged 16 and 17 will get a 30p rise to £3.30 an hour.
"The government's own minimum wage law discriminates against people on the grounds of age," Olly Scott, BCC spokesman told BBC News. "They are in a pickle."The government's own minimum wage law discriminates against people on the grounds of age," Olly Scott, BCC spokesman told BBC News. "They are in a pickle.
"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.""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 warned that if this were to happen firms would be less likely to hire young people.The BCC warned that if this were to happen firms would be less likely to hire young people.
According to The Age Employment Network (TAEN), a charity dedicated to improving the employment prospects of older workers, a legal challenge to minimum wage rules could be on the cards.According to The Age Employment Network (TAEN), a charity dedicated to improving the employment prospects of older workers, a legal challenge to minimum wage rules could be on the cards.
"I am sure it (minimum wage law) could be challenged," Patrick Grattan, TAEN chief executive, told BBC News."I am sure it (minimum wage law) could be challenged," Patrick Grattan, TAEN chief executive, told BBC News.
"It could be considered unfair to pay someone a different wage based on their age rather than someone being more competent it is the assumption that they are open to pay more.""It could be considered unfair to pay someone a different wage based on their age rather than someone being more competent it is the assumption that they are open to pay more."
But Mr Grattan added that the government may have a viable defence against any legal challenge.But Mr Grattan added that the government may have a viable defence against any legal challenge.
"The government may be able to defend the law on the grounds that the different rates of minimum wage for under 21s are in place to encourage more younger people to stay on in education rather than find a job," he said."The government may be able to defend the law on the grounds that the different rates of minimum wage for under 21s are in place to encourage more younger people to stay on in education rather than find a job," he said.
New lawNew law
The banning of age discrimination from October on has been described as the biggest shake-up of workplace laws for 30 years.The banning of age discrimination from October on has been described as the biggest shake-up of workplace laws for 30 years.
It will be unlawful to discriminate against workers under the age of 65 on the grounds of age.It will be unlawful to discriminate against workers under the age of 65 on the grounds of age.
Making someone redundant or barring workers from promotion because they are too old - or too young - will be against the law.Making someone redundant or barring workers from promotion because they are too old - or too young - will be against the law.
As they approach 65, workers will have to be given six months' notice that their employer wants them to give up their job and retire.As they approach 65, workers will have to be given six months' notice that their employer wants them to give up their job and retire.
The employee will be allowed to request to continue working but the employer has the right of refusal.The employee will be allowed to request to continue working but the employer has the right of refusal.
Judicial reviewJudicial review
The introduction of the age laws has caused some controversy. Half of people are unaware of the law changeThe introduction of the age laws has caused some controversy. Half of people are unaware of the law change
On Monday, the Employers' Forum on Age warned that 50% of staff were unaware that the age discrimination law was coming in.On Monday, the Employers' Forum on Age warned that 50% of staff were unaware that the age discrimination law was coming in.
Likewise, concerns have been raised that businesses are unprepared for the changes, and could end up being taken to employment tribunal.Likewise, concerns have been raised that businesses are unprepared for the changes, and could end up being taken to employment tribunal.
Some unions and charities have suggested that the laws do not go far enough as they do not offer protection to people over 65.Some unions and charities have suggested that the laws do not go far enough as they do not offer protection to people over 65.
On Thursday, the High Court agreed to hear a case brought by charity Heyday based on the argument that forcing people to leave work just because of their age contravenes European employment law.On Thursday, the High Court agreed to hear a case brought by charity Heyday based on the argument that forcing people to leave work just because of their age contravenes European employment law.
The case will be heard on 6 December, and could lead to a full judicial review of the age laws.The case will be heard on 6 December, and could lead to a full judicial review of the age laws.