Default retirement age will be abolished
Date: 30/7/2010
Summary: The Government announced today that the default retirement age (DRA) will be abolished from 1 October 2011.
Key points from the announcement:
The DRA will be abolished from 1 October 2011
· No new notices for compulsory retirement using the DRA procedure will be permitted from 6 April 2011.
· Between 6 April and 1 October, only people who were notified before 6 April, and whose retirement date is before 1 October can be compulsorily retired.
· After 1 October 2011 any use of retirement age will have to be objectively justified and will be subject to claims of age discrimination and subject to challenge at tribunal.
· A consultation is open from today until 21 October 2010 seeking views on both what additional support is needed for employers to manage without a DRA and any unintended consequences for insured benefits and employee share schemes
· The consequent removal of the administrative burden for employers of the statutory retirement procedures.
What this means for employers
EFA welcomes today's announcement and have campaigned since 2006 to give people greater choice as to when they retire. We have been actively involved in the discussions that have led to the announcement of the abolition of the DRA.
Employers have nothing to fear from this change. The use of a DRA is an outdated concept and the removal of forced retirement is an opportunity to put policies and processes in place which make the most of an age diverse workforce.
How EFA can help you
EFA are here to help members who currently use a DRA to manage the transition to life without it.
EFA:
· Is running retirement workshops for members in September, October and November. Information on our first session on 16th September is here.
· Has case studies on the EFA website under Good Practice Employer Policies showing successful use of living without a DRA.
· Will be contacting members with a summary of the pertinent issues from the consultation seeking your views to contribute to the consultation. (Information on the consultation can be found here.)
· Has produced more detailed guidance on today's announcement with some key Questions & Answers on practical aspects of the use of the DRA between now and October 2011. (Available for members only.)
The Employers Forum on Age
Rachel Krys T: 07799 625 233 E: rachel.krys@efa.org.uk
The Employers Forum on Age (EFA) is the leading campaigner on age issues in the workplace. The EFA is a think tank of employers established in 1996 to eradicate ageism in the workplace. Since then it has helped provide advice, training and support for workplaces that want to eradicate age discrimination from their employment practices and helped prepare them for the new legislation.
The EFA works with a number of employers, including B&Q, Hertfordshire County Council, Department for Work and Pensions, Nationwide, Marks & Spencer and JD Wetherspoons, who report that operating without the default retirement age has resulted in significant business benefits; filling skills gaps, keeping valuable members of their workforce, having a better connection with their diverse customer base and improving business performance.
More information about membership of EFA.
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