Over 65s free to work on from April
by Gill Montia
The Government has confirmed that the Default Retirement Age (DRA) is to be phased out this year, the BBC has reported.
The move will allow the over 65s “the freedom to work for longer”, while at the same time providing a boost to the UK economy.
The change means that from 6th April 2011, employers will no longer be able to issue notifications for compulsory retirement using the DRA procedure.
However, staff who have been notified before 6th April, and who are due to retire before 1st October, can still be removed using the DRA, and some employers will be excluded from the new requirements, providing they can justify their actions.
Employers will be greeting the news with caution; last month the Confederation of British Industry called on ministers to delay the change for a year, warning that companies faced greater risk of tribunal claims if the Government does not tackle the “unintended consequences” of its decision.
The business lobbying group is particularly keen for ministers to “spell out” how companies can use “objective justification” to defend a retirement age.
In addition, it has questions to ask about occupational benefits for those working beyond the “milestone” of the state pension age.
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