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Small businesses are risking employment disputes as they fail to make changes to their employment policies following age discrimination legislation introduced in October 2006, says new research by employment relations organisation Acas.

The survey of 750 small businesses reveals that only 17 per cent of employers have introduced changes to their employment and recruitment practices. Respondents say that they have not made changes because they believe their organisations already comply or that the regulations do not apply to their business.

Acas chair Rita Donaghy says: ‘These results are worrying as they highlight a potential cost time bomb in smaller companies in terms of potential tribunal cases. Age discrimination can affect all employees, young and old, and to comply can be very simple and quick.

‘We are urging businesses to act now, helping them to put in place policies that minimise the risk of prosecution and to make employment decisions on the basis of talent and skills alone.’

Key findings reveal that two-thirds of employers in the survey thought that they were fairly or very well informed about the age discrimination regulations. However, under 30 per cent of all the employers were clear about the law surrounding employees and their retirement age.

Organisations employing fewer than ten people were the least likely to have made any changes in response to the new law, with only six per cent having done so. One in ten SMEs in the survey had previously treated people differently on the basis of age and had not made changes to their practices in response to the regulations.

Copies of the Acas guidance can be downloaded free of charge from the Acas website or from the publications orderline on 08702 42 90 90.

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