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Seminar: Outsourcing and Contract Procurement
Tue 28 Feb 2012
Minerva House, 5 Montague Close, London, SE1 9BB
Employers need to be made aware of the upcoming abolition of the default retirement age
Wed 11 Aug 2010
Weeks after the coalition government confirmed that the default retirement age is to be abolished by October 2011, employment advisors feel that company bosses need to be made fully aware of the implications.
Employment relations minister Edward Davey originally stated that scrapping the default retirement age will help to end age discrimination in Britain.
He said older workers have a "vital contribution" to make to Britain's economic recovery and long-term prosperity. This has been hailed as an "historic" decision by Age UK, which described the default retirement age as "arbitrary and unfair".
However, many feel that employers need to be careful that they do not dismiss members of staff on the basis of their age - otherwise they may face an employment tribunal for age discrimination.
Any grounds for dismissal will have to be the same for all employees if the new rules are put in place, regardless of how old a person is. It is important that bosses ensure their retirement policy is based on the needs of their company and does not make assumptions about the skills and abilities of older workers.
Sue Kelly, an employment law partner at Winckworth Sherwood, commented: "Employers and their lawyers should respond to the government's consultation about this and make their views known, if the huge uncertainties and difficulties likely to be created by the abolition of the default retirement age are to be avoided."
