Of the many measures announced in last month's Emergency Budget to concern employers, perhaps the least surprising was the confirmation the coalition government plans to scrap the default retirement age (DRA) of 65.
The government revealed it would "quickly phase out" the DRA from April next year - although offering no timescale for this process - and consult with employers on how best to do so. What again?
We have already had one consultation on the future of the DRA, held by
the previous Labour government, which ended in February. The findings
and evidence from that remain unpublished.
So do we really need to hold another consultation on the same topic less than six months later?
Age campaigners want the government to announce in April 2011 that it will be abolishing the DRA in October of the same year - rather than phasing it out in stages - giving employers a definitive date to work towards.
Influential business groups such as the CBI and EEF would rather the retirement age remain in place, but if not, want as much time as possible for their members to prepare and adapt their policies and practices.
My view is that the government has swerved making a clear decision in favour of holding yet another time consuming consultation. Ministers are shuffling towards ending this legal anomaly and the culture of forced retirement.
The government should have analysed the evidence submitted from the previous consultation and committed to date to scrap the DRA and then worked with groups like the Employers Forum on Age to produce meaningful, practical guidance.
So do we really need to hold another consultation on the same topic less than six months later?
Age campaigners want the government to announce in April 2011 that it will be abolishing the DRA in October of the same year - rather than phasing it out in stages - giving employers a definitive date to work towards.
Influential business groups such as the CBI and EEF would rather the retirement age remain in place, but if not, want as much time as possible for their members to prepare and adapt their policies and practices.
My view is that the government has swerved making a clear decision in favour of holding yet another time consuming consultation. Ministers are shuffling towards ending this legal anomaly and the culture of forced retirement.
The government should have analysed the evidence submitted from the previous consultation and committed to date to scrap the DRA and then worked with groups like the Employers Forum on Age to produce meaningful, practical guidance.
Comments (1)
I request the Coalition Government to abolish default retirement age immediately. Abolition of default retirement age will give employees the choice to work as long as they are able to. Scrapping the default retirement age will be good for those who want to carry on working and good for the country, as it will boost tax revenues and reduce welfare payments.
Posted by S Nathan | July 8, 2010 4:48 PM
Posted on July 8, 2010 16:48