Ageism in the workplace: What every SME employer in Australia needs to know

As an employer, remaining compliant with the Fair Age Discrimination Act 2004 is imperative to the functioning of your Australian business. It’s a key piece of Australian legislation and a commitment to fair and inclusive workplaces. 

For small and medium-sized enterprises (SMEs), understanding this legislation is essential to building a diverse team and avoiding costly legal risks. The Act makes it unlawful to treat someone unfairly because of their age—whether in hiring, promotion, training, or termination—ensuring every employee has equal opportunity to contribute, regardless of their stage in life. 

Role and impact in the workplace 

The Act makes it unlawful to discriminate against individuals based on age across all aspects of employment. 

Both direct and indirect discrimination are prohibited: direct discrimination occurs when someone is treated less favourably because of age, while indirect discrimination involves workplace policies or practices that disadvantage people of a certain age group unless these policies can be justified as reasonable.  

For SMEs, this means recruitment practices, workplace policies, and training opportunities must be designed to ensure equal access and treatment for people of all ages. Age should never be a factor in decisions related to hiring, firing, promotions, or development programs unless a legal exemption applies.  

Exemptions and compliance strategies 

Not all forms of age-based differentiation are unlawful under the Act. Several exemptions exist—for example: 

• when compliance with other Commonwealth or State laws mandates age restrictions (such as minimum legal ages for certain jobs), or  

• when age-related criteria are required by the nature of the job (the “inherent requirements” exemption). 

Positive discrimination is also permitted, allowing measures that genuinely benefit specific age groups, such as special discounts for seniors or targeted youth employment programs. 

Employers should carefully assess exceptions before applying age-based restrictions, thoroughly documenting the rationale, consulting legal guidance, and ensuring compliance with both the Act and applicable State or Territory laws. 

It’s also crucial to keep up with changes to the law and recent cases to avoid inadvertent breaches and potential claims.  

Resolving and preventing disputes

Complaints under the Age Discrimination Act 2004 are typically addressed first through the Australian Human Rights Commission’s conciliation process, designed to resolve issues efficiently and cost-effectively. If resolution doesn’t occur, complaints can progress to the Federal Court. Businesses should encourage employees and management to report concerns early and work proactively to address any alleged discrimination.  

Best practice involves regular policy reviews, staff education, and transparent communication about rights and obligations regarding age discrimination. Ensuring fairness and equal opportunity regardless of age not only complies with the law but also enhances workplace morale and leverages the value of a diverse workforce.  

Why age inclusion matters

Besides compliance, promoting age diversity is vital for tapping into a broad spectrum of experience and perspectives. 

Promoting age inclusion isn’t just about meeting legal requirements—it’s a strategic advantage for SMEs. A workforce with diverse age groups brings together a rich blend of skills, life experiences, and viewpoints that can drive innovation and improve problem-solving. 

Younger employees may introduce fresh ideas and technological agility, while mature team members can offer seasoned judgment and industry insight. By embracing age diversity, businesses can strengthen collaboration, enhance customer connections across demographics, and build a resilient culture that adapts well to change. 

Age-inclusive workplace practices

Here are practical examples of age-inclusive workplace practices SMEs in Australia can adopt: 

Recruitment and Hiring

• Use age-neutral language in job advertisements. 

• Promote opportunities through varied channels to reach different age groups. 

• Focus on skills and competencies rather than years of experience alone. 

Workplace Culture

• Encourage intergenerational mentoring programs to allow knowledge exchange. 

• Celebrate milestones and contributions from employees of all ages. 

• Facilitate team-building activities that cater to diverse interests and abilities. 

Training and Development

• Offer flexible learning options, such as online modules and hands-on workshops. 

• Provide training that addresses technological changes for all age brackets. 

• Support career progression for employees regardless of their stage in life. 

Flexible Work Arrangements

• Introduce part-time or flexible schedules to suit varying lifestyle needs. 

• Consider job-sharing arrangements between employees of different age groups. 

• Offer phased retirement options to retain valuable expertise longer. 

Stay compliant with Australian employment law with BrightHR

Keeping up with evolving laws takes time and resources. For sole traders and small businesses, this time and effort can be hard to come by. That's where BrightHR's end-to-end employment relations support system can help. 

Our HR software simplifies this by helping you centralise, create, and securely store your documentation without thinking twice. BrightHR software includes a library of expertly written HR documents including employment contracts and employee handbooks. 

And for any questions about HR and Australian employment law, you can get immediate answers with BrightAdvice, our confidential 24/7 employment relations advice line. 

Book your free demo today.