UK plans to scrap mandatory retirement
Source: Agencies |
January 14, 2011, Friday
|
Print Edition
Print Edition
BOSSES will no longer be able to force staff to retire at 65, Britain's government said yesterday in a move to boost the number of older people staying on at work as the population ages.
Governments across Europe have lifted retirement ages as part of austerity packages to cut record budget deficits, despite widespread protests.
British employers will be barred from issuing compulsory notifications for retirement from October, but will still be able to force people out if they can give a justifiable reason.
"Older workers can play an incredibly important role in the workplace and it is high time we ended this outdated form of age discrimination," said Employment Relations Minister Edward Davey.
Population projections suggest more than 10 -million people living in Britain today will reach their 100th birthday, putting pressure on the government to reform pensions and increase the working age.
Davey said there was no need to force people out of employment if they were still fit to work.
"Many older people have skills and a huge contribution to make to businesses," Davey claimed.
But the CBI, Britain's top employers' organization, criticized the move, saying it did not give employers flexibility to get rid of unsuitable staff.
"The impact on employers, especially smaller ones, will be considerable. There isn't enough clarity for employers on how to deal with difficult questions on performance," said John Cridland, the CBI -director-general designate.
Governments across Europe have lifted retirement ages as part of austerity packages to cut record budget deficits, despite widespread protests.
British employers will be barred from issuing compulsory notifications for retirement from October, but will still be able to force people out if they can give a justifiable reason.
"Older workers can play an incredibly important role in the workplace and it is high time we ended this outdated form of age discrimination," said Employment Relations Minister Edward Davey.
Population projections suggest more than 10 -million people living in Britain today will reach their 100th birthday, putting pressure on the government to reform pensions and increase the working age.
Davey said there was no need to force people out of employment if they were still fit to work.
"Many older people have skills and a huge contribution to make to businesses," Davey claimed.
But the CBI, Britain's top employers' organization, criticized the move, saying it did not give employers flexibility to get rid of unsuitable staff.
"The impact on employers, especially smaller ones, will be considerable. There isn't enough clarity for employers on how to deal with difficult questions on performance," said John Cridland, the CBI -director-general designate.
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