HRreview Header

‘Serious concern’ over default retirement age removal

Removing the default retirement age could lead to problems for employers, according to one organisation.A manufacturing association has criticised the government’s plan to scrap the default retirement age (DRA), saying it does not give employers enough time to implement new policies.

EEF has also complained older workers could demand more tribunals if they think they have been unfairly asked to leave.

The Coalition’s Programme for Government is committed to phasing out the DRA, explaining in yesterday’s consultation document that there were financial, health and social benefits to working later in life.

Head of employment policy at EEF David Yeandle announced that many manufacturers were "seriously concerned".

"There is also a real danger that it could open a Pandora’s Box with the onus being placed on employers to prove whether older employees are capable of continuing in their current role," he added.

The organisation also demanded an explanation for the "mixed messages" being sent out by the government.

It claimed it feels there is increasing pressure on bosses to lower youth unemployment and hire more young people, but not giving them the chance to cut their workforces by asking older workers to leave.

Official guidance is necessary, EEF has stated.

Posted by Cameron Thomson



Share

Latest News

Latest Analysis

Related Articles

NHS trust ordered to pay £200,000 for failing to support nurse after brain injury

A former nurse whose employer failed to make reasonable adjustments following a serious brain injury was awarded more than £200,000.

UK SMEs ‘reassess freelancer use’ – but fear consequences of misclassification

Many businesses are considering turning to freelancers, but there are lingering fears around legal compliance and worker misclassification.

David Roberts: The psychology of a savings pot – and how employers can help

Money doesn’t necessarily make people happy. But financial stress will certainly make people unhappy - and a savings pot can help.

Almost half of UK’s FTSE 100 firms appoint chief AI officers

Almost half of of the UK’s FTSE 100 companies have now introduced a dedicated artificial intelligence (AI) leadership role.