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30/07/2010 09:47:23 www.clicklegalservices.co.uk Administrator Posts: 374

Following the announcement in the Budget that the DRA would be phased out from April 2011, the Default Retirement Age (DRA) is to be scrapped by October 2011, the Government said yesterday.The scrappage plans provide for a 6 month transition from the present system – which is that employers can force staff to retire at 65 – regardless of their circumstances. This is set to change, as people are, the Government say, living longer. The government also says that this is merely one step it is taking to help people work longer, against the backdrop of social and demographic change. The proposals also seek – it is said, to help employers in removing the administrative burden of the statutory retirement procedures. With the DRA removed there would seem to be no reason to keep the employees ‘right to request’ working beyond retirement – or – for employers to give them a minimum of six months notice of intended retirement. The Employment Relations Minister Edward Davey said: “Older workers bring with them a wealth of talent and experience as employees and entrepreneurs. They have a vital contribution to make to our economic recovery and long term prosperity. It was also said that “Many older people want to work after age 65 and have a wealth of skills and experience that are not being used. We want to get rid of the Default Retirement Age so that if they want to work they can do so. By spending longer in the workforce they can also have a better pension in retirement.” It will still be possible for employers to operate a compulsory retirement age – provided that they can objectively justify it. Whilst we agree that this is a laudable aim, there is feeling in some quarters that this will mean fewer jobs and less working opportunity for younger people. Only time will tell.

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