Government to allow redundancy claims for workers aged over 65

The Government is set to allow workers over 65 to claim for redundancy payments if they lose their jobs, according to reports.

The Department of Trade and Industry revealed its new policy to its panel of experts, the Age Advisory Group, last week, according to the Financial Times.

It will mean that workers over the age of 65 will be able to make redundancy claims in the same way as younger staff, although the levels of pay outs have not been confirmed.

Last December the Government set out its proposals to fulfil the European Employment Directive, which prohibits age discrimination in employment and vocational training.

The Government concluded that legislation, meant to come into force in 2006, should:

  • Set a default retirement age of 65, but also create a right for employees to request working beyond a compulsory retirement age, which employers will have a duty to consider
  • Closely monitor the appropriateness of keeping a retirement age, subjecting it to formal review five years from implementation.

Currently, employers can set whatever retirement age they like, with many workers being retired at 60 or even younger. But under these reforms retirement ages below 65 will be allowed only if they can be shown to be appropriate and necessary.

Comments are closed.