Member Article

Default Retirement Age to be scrapped

The Government has confirmed it will scrap the Default Retirement Age (DRA).

Currently the DRA enables employers to make staff retire at 65 regardless of their circumstances.

The Government feels the rules must change as people are living longer, and leading healthier lives.

Ministers have decided to proceed with their plan to phase out the DRA between 6 April and 1 October 2011.

Employment Relations Minister Edward Davey, said: “Retirement should be a matter of choice rather than compulsion – people deserve the freedom to work for as long as they want and are able to do so.

“Older workers can play an incredibly important role in the workplace and it is high time we ended this outdated form of age discrimination. “

The government has come under criticism from one of the region’s major employer groups, who believe it is “too little too late”.

Sarah Green, Regional Director, CBI North East, said: “The Government’s decision to scrap the DRA leaves businesses with a number of difficult practical issues.

“The impact on employers, especially smaller ones, will be considerable.

“Less than three months is not enough time for businesses to put in place new procedures. The outcome will be more unpleasant and costly legal action.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .