Just when you thought you were getting to grips with Employment Law, the Coalition Government commits to abolishing the default retirement age!
As of 6 April 2011, businesses will no longer be able to require an employee to retire simply because they have reached the age of 65. This will, undoubtedly, be one of the biggest changes of 2011 and with the number of tribunal claims rising by 56% last year, it is no surprise that almost 50% of employers are already worried about a surge of age-related claims!
Some are calling the abolition a ‘victory against ageism’ which will enable the retention of skill and experience, whilst reducing administrative burdens. Others believe the change to be a ‘disaster waiting to happen’, fearing it will create a complicated, less dignified system and a minefield of uncertainty for employers. The UK’s leading employers’ group, CBI, has urged the Government to delay their plans in order to allow time to simplify the law on performance management and unfair dismissal before scrapping the default retirement age.
However, the Coalition Government believe the change will encourage people to work for longer, against a background of an ageing population, benefitting the economy and easing strain on public finances. Commitment to the change was confirmed in October and it is certainly a case of ‘when’ rather than ‘if’ the abolition will take effect. At present, the phasing out remains scheduled to commence on the 6 April 2011.
[The information and commentary contained in this blog does not, and is not intended to, amount to legal advice and does not form the professional advice or opinion of any Solicitor or Law Firm]
No comments:
Post a Comment