Last Innings for the Default retirement age.
Finally and inspite of the gallant and brave efforts of the CBI and other employer-oriented groups to either scuttle or delay it, its going to happen.
Basically, on 13 January, after consultations and submissions from several concerned individuals and organisations (from all three sectors), notably- Age UK its been confirmed that the Default retirement age of 65 (which was introduced by the Employment Equality Age Regulations of 2006- now absorbed into the Equality Act 2010) is to be abolished by 1 October 2011. What this means is that employers will no longer be able to force employees to retire at the age of 65. The only exception to this being where it can be objectively justified i.e where there is compelling business or other reason for there to be a retirement age. However it will now be a matter of individual contracts, rather than a statutory requirement
The Government has announced a milestone schedule to the implementation of removal of the default retirement age, which will ultimately culminate in complete abolition by 1 October 2011.
The key planks of implementation are thus:
From 1 October 2011, employers will no longer be able to restrict employment to persons approaching the age of 65, i.e 64 years and 6 months, as is the case now.
From 6 April 2011, employers will no longer be able to issue notices of retirement and any notices of retirement issued before then would have to expire before 1st October 2011 to be valid. Any notice issued after 6 April 2011 or scheduled to expire after 1st October 2011, will be invalid and will not be enforced.
The notice of retirement procedure contained in Schedule 6 of the former Employment Equality (Age) Regulations, is to be removed and replaced by a formal guidance which has been prepared and published by Acas, in its revised “Age and the workplace” guidance. This is referred to as a guidance document, rather than a Statutory (legislative) code.
Employers will however still be able to terminate the employment of a member staff, if they are seen to be incapable of doing their job, as opposed to merely being on account of their age- this being a current provision of Employment legislation.
The Government, also recognising the implication of the removal of the default retirement age on Group risk-insured benefits (i.e that employers may be tempted to stop offering these, following the removal of the DRA) has announced that an exception to the equal treatment principle for Group insured risk benefits will be introduced. The exact detail of this will be announced later.
All of these shall be contained in regulations which shall come into effect on 6 April 2011.
There are varying opinions on the implications of the various provisions listed above, ranging from the positive i.e the freedom for those who are capable to continue to contribute to the economy regardless of age, the rectification of the often-unfair disengagement of perfectly able and skilled employees- purely on account of numerical age, to the negative views of the cost implications for employers, the removal of the expectation of quiet retirement in some instances etc.
My considered view being that the concept of a statutory retirement age, wherein perfectly able individuals are forced to retire, is unacceptable and that retiremnt should now be the subject of individual negotiation and indeed capability to perform the task for which the person is employed.
Anyway, its here and a lot of hard work has gone into making this happen, for now lets celebrate...
Basically, on 13 January, after consultations and submissions from several concerned individuals and organisations (from all three sectors), notably- Age UK its been confirmed that the Default retirement age of 65 (which was introduced by the Employment Equality Age Regulations of 2006- now absorbed into the Equality Act 2010) is to be abolished by 1 October 2011. What this means is that employers will no longer be able to force employees to retire at the age of 65. The only exception to this being where it can be objectively justified i.e where there is compelling business or other reason for there to be a retirement age. However it will now be a matter of individual contracts, rather than a statutory requirement
The Government has announced a milestone schedule to the implementation of removal of the default retirement age, which will ultimately culminate in complete abolition by 1 October 2011.
The key planks of implementation are thus:
From 1 October 2011, employers will no longer be able to restrict employment to persons approaching the age of 65, i.e 64 years and 6 months, as is the case now.
From 6 April 2011, employers will no longer be able to issue notices of retirement and any notices of retirement issued before then would have to expire before 1st October 2011 to be valid. Any notice issued after 6 April 2011 or scheduled to expire after 1st October 2011, will be invalid and will not be enforced.
The notice of retirement procedure contained in Schedule 6 of the former Employment Equality (Age) Regulations, is to be removed and replaced by a formal guidance which has been prepared and published by Acas, in its revised “Age and the workplace” guidance. This is referred to as a guidance document, rather than a Statutory (legislative) code.
Employers will however still be able to terminate the employment of a member staff, if they are seen to be incapable of doing their job, as opposed to merely being on account of their age- this being a current provision of Employment legislation.
The Government, also recognising the implication of the removal of the default retirement age on Group risk-insured benefits (i.e that employers may be tempted to stop offering these, following the removal of the DRA) has announced that an exception to the equal treatment principle for Group insured risk benefits will be introduced. The exact detail of this will be announced later.
All of these shall be contained in regulations which shall come into effect on 6 April 2011.
There are varying opinions on the implications of the various provisions listed above, ranging from the positive i.e the freedom for those who are capable to continue to contribute to the economy regardless of age, the rectification of the often-unfair disengagement of perfectly able and skilled employees- purely on account of numerical age, to the negative views of the cost implications for employers, the removal of the expectation of quiet retirement in some instances etc.
My considered view being that the concept of a statutory retirement age, wherein perfectly able individuals are forced to retire, is unacceptable and that retiremnt should now be the subject of individual negotiation and indeed capability to perform the task for which the person is employed.
Anyway, its here and a lot of hard work has gone into making this happen, for now lets celebrate...
posted by Seal67 at 9:25 am
4 Comments:
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