A LIVERPOOL firm behind the UK’s first website dedicated to discrimination law says claims of ageism could now cost companies dear.
Experts at Brabners Chaffe Street, which runs discriminationonline.com, warns businesses found in breach of new rules could be facing compensation claims running into seven figures.
Around 950 claims have been filed since the introduction of new laws in October banning discrimination on the grounds of age, according to the Employment Tribunals Service.
The figures were released as one of the first high-profile age discrimination cases began at an employment tribunal yesterday, brought by Peter Bloxham, a former partner at one of London’s biggest city law firms.
Freshfields Bruckhaus Deringer was accused of insufficient consultation leading up to its 2006 partners’ pension reform and forcing out its former insolvency partner Bloxham, the London Central Employment Tribunal heard.
Bloxham, who retired from the firm last October, is making three complaints of direct and indirect age discrimination, which arose out of pension reforms last year.
The nine-day tribunal will hear six witnesses on behalf of Freshfields including managing partner Peter Jeffcote, chief executive Ted Burke, and senior partner Guy Morton.
Last night, Liverpool employment lawyer Joe Shelston, an expert in age discrimination at Brabner Chaffe Street, said age discrimination cases could be brewing for businesses across the country.
“We receive a lot of queries from employers asking about job adverts and how they should be worded,” he said.
“If you look at most recruitment websites, you will still see adverts for young and dynamic staff, which on the face of it are unlawful.
“So far no one has faced any action for this but it’s only a matter of time.
“Other adverts which stress that a successful candidate needs 10 years’ experience also technically break the rules, as a younger candidate is less likely to meet that requirement.
“We haven’t seen the impact we initially expected after the new laws were introduced, however, this may be due to the tribunal system.
“A lot of cases are working through the system and a typical discrimination case can take up to nine months.”
Mr Shelston said employers needed to be “very, very careful” or face huge compensation claims.
He said: “The awards for age discrimination are uncapped so it is not unrealistic to see employers facing seven-figure pay-outs.
“The days of replacing older, more expensive workers with someone 20 years younger are long gone. Employers need to be very, very careful.”
The age debate hit the headlines last month after TV presenter Nick Ross resigned from Crimewatch in a row over ageism at the BBC.
It came only three months after veteran newsreader Moira Stuart was sidelined amid claims of ageism.
The cost to UK businesses of discriminating against staff has soared over recent years – and is predicted to rise yet further in 2007.
Latest figures suggest discrimination on the grounds of race, gender or sexual orientation cost the economy £320 million in 2006, a rise of 52 per cent.
And that figure is only likely to rise further following the introduction of laws to tackle age discrimination in October last year.
Around 23,000 discrimination-related legal claims were brought in the UK last year.
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