default retirement age

Employers Open to Accusations of Ageism

Following the abolition of the default retirement age (DRA) in October 2011, employers have not been able to give notice of retirement to employees, but many bosses still don’t understand the legislation and implications and are leaving themselves open to accusations of ageism, claim employment law experts from ELAS. According to the Manchester-based business support consultancy, only 46% of workers aged over 65 receive a formal performance appraisal at least once a year, while 51% had received no training or an offer of training in the past three years. ELAS employment law expert, Peter Mooney, said: “We’re finding that most businesses are still expecting their employees to retire at the age of 65 and are treating them accordingly. Asking an employee about when they intend to ... »

Scrapping Default Retirement Age May Be Costly

More than half of small firms are unprepared for the scrapping of the default retirement age (DRA) and the extra costs this may bring, the Employment Law Advisory Services (ELAS) has warned. From 1 October this year, the DRA will be abolished and businesses will no longer be able to force staff to retire when they reach 65. However, the ELAS survey of 1,000 small and medium-sized enterprises found that most were ill-equipped to deal with the practical implications of the new law — such as the rising cost of private health insurance or the workplace adjustments needed for those with disabilities. More than half of respondents (57%) admitted they were unaware that costs for death-in-service benefits and private healthcare were likely to soar for workers aged 65 and over. In addition, 54% sai... »

Rethinking Retirement – Free Guide

Employees can access advice on managing the end of the default retirement age (DRA), following the publication of a free guide by Saga. Under reforms to phase out the DRA, it is no long possible to maintain a mandatory retirement policy for employees aged 65 or above, unless it can be objectively justified. The Rethinking Retirement guide for Employees (PDF) includes frequently-asked-questions about the repeal of the Default Retirement Age as well as case studies about the successful performance management of older employees. It also contains advice for employers on: transitional arrangements for the end of the DRA arrangements for people approaching retirement and how they fit with workplace discussions on performance or training adapting jobs and working conditions for older employees Sp... »

Scrapping DRA: Rise in Discrimination Claims?

Business groups have voiced concerns that the confirmed plans to scrap the default retirement age (DRA) by October 2011 will cause a rise in age discrimination claims. From 6 April 2011 employers will not be allowed to issue any new notices of retirement, while any prior notices must take effect before 1 October 2011. From then, businesses wanting to terminate employment of an older employee must have a reason other than age, unless they can show there is a legitimate aim underpinning the retirement policy, such as health and safety concerns. Business groups gave mixed reactions. The Confederation of British Industry (CBI) criticised the Government for not providing guidance earlier on working without the DRA. The Chartered Institute of Personnel and Development (CIPD) welcomed the news, s... »

End of the Line for the Default Retirement Age

The Government has today confirmed that it will remove the Default Retirement Age (DRA) so that people have more choice when to stop working. As well as benefiting individuals, the freedom to work for longer will provide a boost to the UK economy. Ministers have decided to proceed with their plan to phase out the DRA between 6th April and 1st October 2011. The Government’s written response to its recent consultation on the issue, and new guidance to help businesses adapt to the removal of the regulation, have been published today. Currently the Default Retirement Age enables employers to make staff retire at 65 regardless of their circumstances, but the Government feels the rules must change as people are living longer, healthier lives. Employment Relations Minister Edward Davey said: &ldq... »