Are employers finding it too expensive to employ and insure older workers? Simon Henthorn & Rachael Healey
Age discrimination has received recent publicity with the Heyday challenge taking the stage in the European Court of Justice. However, the legislation creates other problems for employers. This article deals with the issue of provision of insurance benefits to older employees, particularly permanent health insurance (PHI) and private medical insurance.
The Employment Equality (Age) Regulations 2006 (SI 2006/1031) (the Regulations) came into force on 1 October 2006, implementing the Framework Directive 2000/78/EC (the Directive). The Regulations provide that in employment and vocational training, it is unlawful to discriminate against workers on the grounds of age. Direct and indirect discrimination, victimisation, instructions to discriminate and harassment are all prohibited. The law covers workers of any age so both the young and old can claim protection.
Direct discrimination is less favourable treatment of a worker on the grounds of their age or apparent age—for instance a refusal to provide PHI cover only to workers over the age of 60. Indirect discrimination is the application of a provision, criterion
