29 July 2010 #Employment
The current default retirement age (DRA) of 65 has been under the spotlight since the introduction of the Employment Equality (Age) Regulations back in 2006 and has not been without its critics.
Today marks the start of a period of consultation by the Government into its proposals to phase out the DRA, which include plans for a six-month transitional period.
So what do the Government`s plans entail.....?
The consultation asks questions on the specific proposals, and the support individuals and businesses might need to manage in the absence of the DRA. Edward Davey, Employment Relations Minister, has said that the Government is "committed to ensuring employers are given help and support in adapting to the change in Regulations."
Whilst Rachel Krys, campaign director at the Employers Forum on Age said "this is an incredible leap forward in employment practices and great news for individuals", will the plan to axe the DRA be welcomed by all? Business leaders have warned that employers will find it difficult to plan for the future if they do not know when staff will step down.
Employers, unions and other groups are being urged by the Government to have their say. Consultation on the proposals closes on 21 October 2010.