EU age directive could disrupt business planning says CBI

The CBI has warned that an EU directive which could lead to the end of the
retirement age in the UK would prevent employers from pursuing effective HR
strategies on workforce planning and succession management.

The employers’ body made its comments as part of its submission on the
Government’s consultation on the EU employment and race directives, which
include plans to introduce age discrimination legislation in the UK by 2006.

The DTI has suggested that the directive could mean the end of the mandatory
retirement age.

"Whatever measures are adopted business feels that the ability to
retire employees at a fixed date should be preserved, particularly given that
there appears to be no demand for its removal from employers," said Katja
Klasson, the CBI’s head of employee relations.

"Retirement in the UK is already fairly fluid with highly valued
employees being encouraged to stay on beyond normal retirement age," she
added.

The CBI believes removing formal retirement ages could lead to bottlenecks
in the promotion process.

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