Small to medium-sized enterprises (SMEs) are being warned that they could be open to ageism claims, after new research has shown that they are unprepared for the forthcoming change in regulations.

A third of SME leaders are completely unaware of the new Employment Equality (Age) Act that comes into force in October 2006, according to insurers, AXA.

Furthermore, of those surveyed only 40 per cent said they had taken steps to addressing the issue, reports Management Issues.

However, many respondents felt that an older workforce was a "positive step" for businesses, but some are also concerned about funding pension plans and training older people.

Lou Macari of AXA said: "We urge SMEs to take time to audit their employment policies and review pension schemes, retirement policies and healthcare arrangements as part of their overall planning and strategy, so they are prepared well ahead of October 2006."

As SMEs employ around 60 per cent of the private workforce in the UK, it is important that they address the changes before it is too late.






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