Default Retirement Age to be Quickly Phased Out

While George Osborne, the Chancellor, said in his budget speech that “we will consult on whether to phase out the default retirement age”, Treasury documents (the Budget Red Book – paragraph 1.109) states that “To ensure that those who wish to work beyond 65 are able to, the Government will consult shortly on how it will quickly phase out the Default Retirement Age from April 2011.”

These changes will have issues for employers, requiring more use of disciplinary procedures to end the employment of poor performing employees, rather than relying upon natural wastage from retirement at 65.

For assistance in managing the workforce, employers should contact Employment Law Clinic for support & assistance.

Filed under: Contracts of Employment, General News, Laws & Regulations by Employment Law Clinic           Post created on: June 23rd, 2010