An ageing workforce and the skills gap

Posted by:

Helen Devery
Consultant, Clyde & Co LLP

1. Higher risk of health and safety breaches
UK law requires workers to be competent, not just willing.

If a business:

• Uses under-trained staff
• Rushes inexperienced workers into complex jobs
• Fails to supervise properly

…it can breach:

• The Health and Safety at Work etc. Act 1974
• Management of Health and Safety at Work Regulations 1999

If someone gets hurt because “the skilled person retired and the junior took over”, the business owner is still legally responsible — and can face fines, prosecution, or enforcement notices.

2. Increased liability for poor workmanship
A skills gap often means:

• More mistakes
• More re-work
• More customer complaints

This increases legal exposure under:

• Contract law
• Consumer Rights Act 2015

Customers can:

• Demand repairs or refunds
• Claim damages for consequential losses
• Take the business to court or use Alternative dispute Resolution schemes (ADR) 

 “Not enough skilled workers” is not a legal defence if work is below standard.

3. Employment law pressure on older workers
Small businesses often rely heavily on older, highly skilled staff. This creates legal tension around:

• Retirement discussions
• Reduced physical capacity
• Succession planning

Risks include breaching:

• Equality Act 2010 (age discrimination)
• Unfair dismissal rules

You can’t push older workers out because they’re older — but you still must ensure work is done safely and competently. Handling this badly can lead to costly tribunal claims.

4. Training obligations and supervision duties increase
When skills are scarce, businesses must invest more in:

• Training
• Mentoring
• Supervision

Failure to do so can breach:

• Health and safety law
• Industry-specific regulations (e.g. electrical or gas work)

Plain English impact:

Letting inexperienced workers “learn on the job” without proper oversight can create legal liability, not just business risk.

Problems meeting licensing, certification, and insurance requirements

Many trades require:

• Named qualified individuals
• Ongoing competency evidence
• Compliance with scheme rules (e.g. Gas Safe, NICEIC)

If experienced staff leave:

• Licences may lapse
• Insurance may be invalidated
• Work may become unlawful

A business can unknowingly become uninsured or non-compliant just because the only qualified person retired.

6. Reduced ability to win contracts and comply with public procurement rules

Public and larger private contracts often require:

• Proof of workforce competence
• Training records
• Succession planning

Skills gaps can legally disqualify small trade firms from certain work, even if demand is high.

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This note is not intended to give legal or financial advice, and, accordingly, it should not be relied upon for such or regarded as a comprehensive statement of the law and/or market practice in this area. In preparing this note we have relied on information sourced from third parties and we make no claims as to the completeness or accuracy of the information contained herein. You should not act upon information in this bulletin nor determine not to act, without first seeking specific legal and/or specialist advice. We and our officers, employees or agents shall not be responsible for any loss whatsoever arising from the recipient’s reliance upon any information we provide herein and exclude liability for the content to fullest extent permitted by law.