| Breaking news - Government Plans to phase out the default Retirement Age
It has today been announced that a consultation process has begun in order to move forward with the coalition government’s plan to phase out the much talked about default retirement age (“DRA”). The proposal talks of a 6 month transitional period with abolition of the scheme in full by October 2011. The DRA was highly contentious when brought in due to the requirements for employers to follow a strict procedure giving a minimum of 6 months notice as well as due to the fact that employee’s felt it was highly unfair to be effectively pushed out of their jobs just because of their age despite feeling fit and able to carry on working much longer. The potential effects on employers in removing the default retirement age could be huge with the need to remove policies and amend contracts. There is also the potential that removal of the DRA may have an adverse affect on our ageing workforce who may find themselves removed under capability procedures or retired prior to the new rules coming in. The Government has invited responses to their consultation paper by 21st October 2010 and we urge all employers to take part and put forward their views. To discuss how the default retirement age may affect you or your business, contact Louise Haward on 01332 225 225, or by email to louise.haward@smithpartnership.co.uk. |
