Age Discrimination Rules in Small Businesses

I recently watched a film called “The Intern” about a 70 year old who joins an online fahions business as an intern, and depicts both the stuggles he has due the way other workers treat him because of his age and also the advantages that he brings to the business.  This got me thinking about age discrimination in businesses and led to this article.

Age discrimination is a pressing issue in workplaces across the globe, including the UK. While larger organisations often have comprehensive human resources (HR) departments to manage compliance with anti-discrimination laws, smaller businesses may lack the resources or expertise to fully understand their responsibilities. Despite this, small businesses are just as accountable under UK law when it comes to treating employees and job applicants fairly, regardless of their age. In this blog post, we will explore the key rules regarding age discrimination in small businesses, why these rules matter, and provide practical examples to illustrate how they apply in real-world scenarios.

As with any of our posts about legal matters, this is not to be taken as legal information but is for general guidance – please check with a professional adviser (for example an employment Solicitor or HR specialist) if you need help in this area.

What is Age Discrimination?

Age discrimination occurs when an individual is treated unfairly due to their age, and can be because they are too young, or too old. The Equality Act 2010 is the primary legislation in the UK that protects individuals from discrimination in the workplace. Under this act, age is considered a “protected characteristic,” meaning that employees, job applicants, and even workers on zero-hour contracts are safeguarded against unfair treatment based on their age.

Discrimination can be direct, indirect, harassment, or victimisation:

• Direct discrimination: Treating someone less favourably explicitly because of their age.
• Indirect discrimination: Implementing policies or practices that disadvantage people of a certain age group.
• Harassment: Behaving in a way that makes someone feel humiliated, intimidated, or degraded because of their age.
• Victimisation: Treating someone unfairly because they complained about age discrimination or supported someone else’s complaint.

Why Is Age Discrimination Harmful?

Age discrimination is not only unlawful and could lead to fines, but also damaging to businesses. It limits diversity, reduces employee morale, and undermines trust within the workplace. For small businesses, which often rely heavily on close-knit teams, such impacts can be particularly detrimental.

For Young Workers

Discriminating against younger employees deprives businesses of fresh perspectives, creativity, and adaptability. It also demotivates young workers, leading to high turnover rates and the loss of potential talent.

For Older Workers

Discrimination against older employees can lead to a loss of valuable experience and knowledge. Businesses that overlook older workers risk missing out on their expertise and loyalty, which are often critical for long-term success.

Examples of Age Discrimination in Small Businesses

Discrimination Against Younger Workers

Example 1: Lack of Opportunities

A 21-year-old applicant, Sarah, applies for a marketing role at a small business. During the interview, the manager mentions, “We usually prefer older candidates because they bring more maturity to the role.” Despite her qualifications and enthusiasm, Sarah is not offered the job.

This is a clear example of direct discrimination. Sarah was rejected based on a stereotypical assumption about her age rather than her abilities or experience.

Example 2: Lower Pay

Jack, a 19-year-old apprentice, discovers that he is paid significantly less than older employees doing the same work. While different pay rates for apprentices are allowed under certain conditions, paying younger workers less simply because of their age, without any lawful justification, is discriminatory.

Example 3: Dismissive Attitudes

Younger workers are often stereotyped as inexperienced or unreliable. A small retail shop manager routinely overlooks Emily, a 22-year-old cashier, for additional training opportunities because they assume she “isn’t ready for more responsibility.” This limits Emily’s career growth and could be classified as indirect discrimination if the pattern persists.

Discrimination Against Older Workers

Example 1: Hiring Bias

John, aged 58, applies for a position at a tech startup. Despite having decades of relevant experience, he is told during the interview that the company is looking for someone “more dynamic and in touch with current trends.” John’s application is rejected, even though he met all the job requirements.

This is an example of direct age discrimination. The decision was based on an unfair assumption about John’s abilities due to his age.

Example 2: Redundancy Decisions

When a small manufacturing business needs to cut costs, they decide to make 62-year-old Diane redundant because “she’s close to retirement anyway.” Diane’s role is not objectively reviewed against younger colleagues doing similar work.

This practice is discriminatory, as redundancy decisions must be based on objective criteria, not assumptions about someone’s age or retirement plans.

Example 3: Lack of Training

Older employees may face barriers to professional development. For instance, Peter, a 55-year-old warehouse worker, is excluded from learning how to use new software. The manager assumes Peter “won’t be interested in new technology” and prioritises younger staff instead. This exclusion could constitute indirect discrimination.

Practical Steps for Small Businesses to Prevent Age Discrimination

Preventing age discrimination doesn’t require a large HR budget. With thoughtful planning and a commitment to fairness, small businesses can create an inclusive workplace. Here are some practical steps:

Create Clear Policies

Develop written policies that explicitly prohibit age discrimination. Include these in employee handbooks and ensure all staff understand the consequences of violating them.

Train Managers and Employees

Provide training on diversity and inclusion, focusing on unconscious bias and the importance of treating colleagues fairly, regardless of their age.

Review Recruitment Practices

Ensure that job adverts, application forms, and interview processes are free from age bias. Use structured interview techniques to assess candidates based on skills and experience rather than assumptions about age.

Monitor Workplace Culture

Regularly assess your workplace culture to identify and address any issues related to age discrimination. Encourage open communication and provide channels for employees to raise concerns.

Conduct Regular Audits

Review workplace policies, practices, and decision-making processes to ensure compliance with the Equality Act 2010. Seek external advice if needed to address gaps in your approach.

Benefits of an Age-Inclusive Workplace

Creating an age-inclusive workplace benefits not only employees but also the business as a whole. A diverse team brings a wealth of experience, perspectives, and problem-solving skills. Older employees often have extensive industry knowledge, while younger employees may bring fresh ideas and technological expertise. Together, they can drive innovation and resilience.

Moreover, fostering a fair and inclusive workplace enhances your business’s reputation. Customers and clients increasingly favour organisations that demonstrate a commitment to social responsibility and equality. This can give small businesses a competitive edge in the market.

Conclusion

Age discrimination is not just a moral issue but a legal one, with significant implications for small businesses in the UK. By understanding the rules outlined in the Equality Act 2010 and implementing practical measures, small businesses can create an inclusive environment where employees of all ages thrive.

Whether it’s ensuring fairness in recruitment, promoting inclusive workplace policies, or fostering a respectful culture, small businesses have the power to make a positive difference. By doing so, they not only comply with the law but also set themselves up for long-term success.