Employment: practices advised to review recruitment, retirement and training policies before new legislation takes effect

Law firms should act now to ensure they are prepared for new age discrimination legislation that will come into force in October 2006, leading employment lawyers have warned.


Direct and indirect age discrimination in employment, recruitment and vocational training will be outlawed under the draft regulations that are published by the government this month.


Rachel Dineley, employment partner and head of the discrimination unit at national firm Beachcroft Wansbroughs, said: ‘The toughest part for law firms will be the provisions dealing with retirement age. The regulations set a default retirement age of 65 and firms will have to objectively justify asking people to leave before then.’


James Davies, a partner in City firm Lewis Silkin’s employment and incentives department, said the new regime will lead to a transformation in the way in which partner performance is managed.


‘Firms that want to remove older partners will have to make sure they have transparent and well-documented performance management,’ he said. ‘Without it, dismissed partners may say they have been treated unfairly and firms will struggle to resist such claims if they do not have clear objective reasons to support the decision.’


Ronnie Fox, employment specialist and former senior partner at London firm Fox Williams, said: ‘It is recognised that in order to make room for new younger people, the older people will have to go, but firms should consider how best they can use the skills of their more senior members.’


Ms Dineley also warned of difficulties ahead for partnerships operating a lockstep remuneration structure. ‘The lockstep will be all right where it is combined with a robust appraisal system, but firms using an unmodified lockstep may find it harder to justify objectively,’ she suggested.


The legislation is also expected to have a significant impact on recruitment practices. ‘Firms will have to ensure their strategies are not discriminatory,’ Mr Davies argued. ‘While the university milk round will still be lawful, it should not be their only method of recruitment.’


Ms Dineley added that it will remain legitimate to advertise a role stating that the successful candidate should have five years’ post-qualification experience, but that this should not be the determining factor. ‘It will be important to demonstrate the firm is open to consider all candidates who can demonstrate they have the requisite skills and competencies,’ she said.


Despite all the potential difficulties for firms, she suggested that the regulations nevertheless present ‘a golden opportunity’ for them to review their recruitment, promotion, training and reward procedures and retirement arrangements.