This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12177927
The article has changed 6 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Ministers confirm end of default retirement age | Ministers confirm end of default retirement age |
(40 minutes later) | |
The Default Retirement Age (DRA) is to be phased out this year, the government has confirmed. | The Default Retirement Age (DRA) is to be phased out this year, the government has confirmed. |
It means employers will no longer be allowed to dismiss staff just because they have reached the age of 65. | It means employers will no longer be allowed to dismiss staff just because they have reached the age of 65. |
The Department for Business said that as well as benefiting individuals, "the freedom to work for longer will provide a boost to the UK economy". | The Department for Business said that as well as benefiting individuals, "the freedom to work for longer will provide a boost to the UK economy". |
Employers had called for the changes to be delayed for a year to allow greater legal clarity over the plans. | Employers had called for the changes to be delayed for a year to allow greater legal clarity over the plans. |
Presently, firms can use the DRA to make staff retire at 65. | Presently, firms can use the DRA to make staff retire at 65. |
Ditching the DRA was first proposed by the coalition government in July last year - largely to tackle issues around the ageing population and the shortfall in pension savings. | Ditching the DRA was first proposed by the coalition government in July last year - largely to tackle issues around the ageing population and the shortfall in pension savings. |
And it has now been confirmed following a consultation process. | And it has now been confirmed following a consultation process. |
"Retirement should be a matter of choice," said Employment Relations Minister Edward Davey. | "Retirement should be a matter of choice," said Employment Relations Minister Edward Davey. |
Justification | Justification |
The change means that from 6 April, bosses will not be able to issue any notifications for compulsory retirement using the DRA procedure. | The change means that from 6 April, bosses will not be able to issue any notifications for compulsory retirement using the DRA procedure. |
Between 6 April and 1 October, only those people who were told before 6 April, and who are due to retire before 1 October, can be compulsorily retired using DRA. | Between 6 April and 1 October, only those people who were told before 6 April, and who are due to retire before 1 October, can be compulsorily retired using DRA. |
Finally, after 1 October, employers will not be able to use DRA to force staff to retire. | Finally, after 1 October, employers will not be able to use DRA to force staff to retire. |
However, although the government is removing DRA, individual employers will still be able to operate a compulsory retirement age "provided that they can objectively justify it". | However, although the government is removing DRA, individual employers will still be able to operate a compulsory retirement age "provided that they can objectively justify it". |
The Department for Business gives two examples of where this might be the case - for air traffic controllers and police officers. | The Department for Business gives two examples of where this might be the case - for air traffic controllers and police officers. |
It added that it had worked with conciliation service Acas to provide comprehensive guidance for companies on the removal of DRA. | It added that it had worked with conciliation service Acas to provide comprehensive guidance for companies on the removal of DRA. |
'Uncertainty' | 'Uncertainty' |
Employer groups had called on the the government to delay introducing the change. | Employer groups had called on the the government to delay introducing the change. |
Last month, the CBI warned that firms faced "huge uncertainty" and a greater risk of unfair dismissal claims unless there was more legal clarity over the plans. | Last month, the CBI warned that firms faced "huge uncertainty" and a greater risk of unfair dismissal claims unless there was more legal clarity over the plans. |
It said that the law on unfair dismissal needed to be made simpler ahead of the scrapping of the DRA. | It said that the law on unfair dismissal needed to be made simpler ahead of the scrapping of the DRA. |
The group added that the ageing population and the shortfall in pension savings made it inevitable people would want to work for longer. | The group added that the ageing population and the shortfall in pension savings made it inevitable people would want to work for longer. |
"However, in certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone," said the CBI's deputy director general John Cridland. | "However, in certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone," said the CBI's deputy director general John Cridland. |
"The DRA has helped staff think about when it is right to retire, and has also enabled employers to plan more confidently for the future." | "The DRA has helped staff think about when it is right to retire, and has also enabled employers to plan more confidently for the future." |
He said a legislative void was opening up with the scrapping of the DRA. | He said a legislative void was opening up with the scrapping of the DRA. |
"In the majority of cases this will not be an issue, but in a minority it will be a serious problem for all concerned," he said. | "In the majority of cases this will not be an issue, but in a minority it will be a serious problem for all concerned," he said. |
Unions have also demanded "clear guidance" from both employers and workers to raise awareness of what protection from unfair dismissal and age discrimination older workers will have. | Unions have also demanded "clear guidance" from both employers and workers to raise awareness of what protection from unfair dismissal and age discrimination older workers will have. |
Are you an employee in your sixties? Are you an employer? How will you be affected by the scrapping of the DRA? Send us your comments using the form below. |