Compulsory retirement to be scrapped and state pension age to rise


The government has announced a further piece of legislation which will change the face of retirement in the UK.

The Default Retirement Age (DRA) of 65 is to be scrapped from April 2011.

As a result of the proposed legislation employers will no longer be able to dismiss an employee just because they turn 65.

The Employment Relations Minister Edward Davey told the BBC it would still be possible for employers to force people to retire if they were no longer up to the job.

“I think this [change] is really beneficial and should not be the problem some people suggest,” he told the BBC.

“As of now, you are still able under the Employment Rights Act 1996 to fairly dismiss someone if you go though the proper processes – and one of the reasons you can dismiss someone fairly includes capability.”

Employers groups had called for a delay in the legislation; however it seems that the government will press ahead with the plans. John Cridland, Director-General Designate of the CBI, said the government’s new guidance was inadequate and did not deal with how firms could retire staff if they were no longer capable of doing their jobs properly.

“There is not enough clarity for employers on how to deal with difficult questions on performance,” he said.

“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,” he added