Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Latest NewsEquality, diversity and inclusionAge discriminationRetirement

Retirement age to go

by dan thomas 7 Dec 2004
by dan thomas 7 Dec 2004

Ministers are braced for a furious backlash from business leaders after deciding to abolish compulsory retirement ages.


The Government is set to announce before Christmas that it will legislate to scrap the current default retirement age of 65 in employment contracts, Personnel Today can confirm. The decision follows a European Union ruling against age discrimination.


Alan Johnson, the pensions minister, has persuaded Patricia Hewitt, the trade and industry secretary, that if it is wrong to sack someone on the grounds of race, religion or sexual orientation, then pensioning off older workers must also be made illegal.


The disclosure comes in a leaked letter, dated 19 November, which has been circulated to cabinet ministers. Privately, ministers expect a fierce response from business, with the Confederation of British Industry (CBI) leading the charge. It claims that the radical change will mean employers will find it virtually impossible to get rid of older workers who want to work past 65 ‘until they drop’.


One consolation for employers is that Johnson and Hewitt have decided to delay implementing some parts of the age discrimination legislation – which the European Commission ruled must be in place by October 2006 – for five years, so that the change will not come into force until 2011. In the meantime, the default retirement age will be changed to 65 years of age for both men and women.


But ministers still fear the proposals may be ruled illegal by Brussels and could bring them into conflict with Peter Mandelson, the former cabinet minister and now EU trade commissioner.


The move will not affect entitlement to the basic state pension, which will remain payable from the age of 65.


The CBI has argued that the retirement age should stay at 65, fearing a swathe of older employees claiming the right to stay on. Hewitt was initially sympathetic to employers, believing that raising the age to 70 might be a compromise. But she was won over by Johnson in a meeting last month.


Ministers had to take the decision after a government-backed taskforce of business leaders, union officials and age lobbyists failed to reach an agreement. A report from the group, chaired by Rita Donaghy of the Acas conciliation service, and including Adair Turner, author of a key government report on pensions, drew no firm conclusions.


This will bring the UK into line with the US, which scrapped the retirement age in 1986, and also most of the EU, which is also being forced to make the change.


David Cracknell is the political editor of The Sunday Times and writes regularly on political issues for Personnel Today


What are the implications for HR? Find out at www.personneltoday.com/indepth

Avatar
dan thomas

previous post
REC launches first recruitment industry audit scheme
next post
IoD welcomes boardroom diversity initiative

You may also like

Don’t be gloomy over social mobility in the...

24 Jun 2022

Christian awarded £22k following dismissal over religious necklace

24 Jun 2022

Movers and shakers June 2022: Lloyds, Indeed, Zoom...

24 Jun 2022

Gender pensions gap: women’s retirement pot less than...

24 Jun 2022

White-hot recruitment market? William Tincup talks to Oven-Ready...

24 Jun 2022

British Airways employees at Heathrow vote for walkouts

24 Jun 2022

Young people need more guidance over ‘green jobs’

24 Jun 2022

Government to repeal agency workers ban during strikes

23 Jun 2022

Long Covid: what tribunal’s disability ruling means for...

23 Jun 2022

Brexit remains an ‘open wound’ for EU employees...

23 Jun 2022
  • NSPCC revamps its learning strategy with child wellbeing at its heart PROMOTED | The NSPCC’s mission is to prevent abuse and neglect...Read more
  • Diversity versus inclusion: Why the difference matters PROMOTED | It’s possible for an environment to be diverse, but not inclusive...Read more
  • Five steps for organisations across the globe to become more skills-driven PROMOTED | The shift in the world of work has been felt across the globe...Read more
  • The future of workforce development PROMOTED | Northumbria University and partners share insight...Read more
  • Strathclyde Business School expands its Degree Apprenticeship offer in England PROMOTED | The University of Strathclyde is expanding its programmes...Read more
  • The Search for Talent: Six Major Employer Pitfalls PROMOTED | The Great Resignation continues unabated...Read more
  • Navigating the widening “Skills Confidence Gap” in 2022, and beyond PROMOTED | Cornerstone OnDemand conducted a global study...Read more
  • Apprenticeships are the solution to your recruitment problems PROMOTED | Apprenticeships have the pulling power...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+