Friday, July 30, 2010

United Kingdom: Government Opens Process for Deleting Default Retirement Age by 2011

The United Kingdom's Coalition Government has announced plans for the elimination of the current age 65 default retirement age following a six month transition phase-out from April 2011. Employment Relations Minister Edward Davey is calling on employers, unions and other groups to have their say on a proposal that could allow many people the choice to work beyond the age of 65.

The government's proposal would still make it possible for individual employers to operate a compulsory retirement age, provided that they can objectively justify it. Examples could include air traffic controllers and police officers. In addition, in its consultation, the government asks whether it could provide additional support for individuals and employers in managing without the DRA or statutory retirement procedure. This includes the possibility of future guidance or a more formal code of practice on handling retirement discussions. Views are also being sought on whether removal of the DRA could have unintended consequences for insured benefits and employee share plans.

Click here for a full copy of the consultation.

Sources: Department for Business, Innovation and Skills Press Release (July 29, 2010); Personnel Today "Default retirement age: Employment relations minister Ed Davey writes exclusively for Personnel Today" (July 29, 2010)

Reactions: The Age and Employment Network News Release (July 29, 2010); Daily Telegraph "Scrapping retirement age opens 'Pandora's box’ of tribunal claims" (July 30, 2010)

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