THOUSANDS of companies could be heading for expensive and embarrassing legal action when new age discrimination laws come into force in October, according to two studies.

A survey of 18,000 employees has discovered that almost half believe that it is acceptable to discriminate on grounds of age when it comes to hiring staff or setting salaries.

They were presented with six scenarios that would break the new law, and between a third and a half of respondents said that all six were a normal part of office life.

A third of people thought that it was fine to pay someone more if they were older, regardless of experience, and more than a third said that it was perfectly acceptable to turn down a job applicant if their age did not suit the company’s image.

An even higher proportion (40 per cent) said that it was fair to hire staff on the grounds of age so that they would fit into a team.

The attitudes are a serious concern for employers. Under the law, line managers and employees, as well as employers, are liable to charges of age discrimination and their behaviour can be cited at a tribunal.

That leaves companies vulnerable to huge payouts if their staff breach the legislation, as there will be no cap on compensation.

Rachel Krys, head of communications at the Employers Forum on Age, which commissioned the research, said that companies needed to wake up to their new responsibilities.

“There is clearly a long way to go before age discrimination is on a par with race and sex discrimination,” she said.

“Employers are just starting to realise that it is not enough to have the right policies in place if their managers and staff do not recognise age discrimination when they see it.”

In the US, cases involving age discrimination are increasing at a faster rate than any other form of claim.

The law, which comes into effect on October 1, will sweep away decades of tradition, especially in recruitment, by banning terms such as “bright young graduate” or “experience required” from job advertisments because they could be an attempt to screen out old or young candidates.

Ageist jokes will also be prohibited and job application forms may no longer request a date of birth.

OUT OF ORDER

From October 1 it will be unlawful to:

Allow older staff to 'coast' into retirement

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