13 January 2011

End To Enforced Retirement As Government Scraps DRA

The end of the UK’s Default Retirement Age will be announced in the House of Commons today, preventing employers from forcing their employers to retire at the age of 65.

The phasing out of the DRA, which currently forces people to stop working at 65, will be revealed in a ministerial statement by Business Minister Ed Davey and will not require legislation.

From the 6 April this year, employers will no longer be able issue compulsory retirement and only those due to retire before 1 October will be forced do so under the DRA.

The new rules mean that by October there should be an additional one million employees aged 65 or over in the nation’s work force.

Whilst the Department of Business claims that the changes will benefit both individuals and the economy, employers fear a greater risk of legal issues such as unfair dismissal claims.

John Cridland, the deputy director general of The Confederation of British Industry told the BBC last month that the scrapping of the DRA could open up a ‘legislative void’.

"In certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone," Mr Cridland said.

There are also fears that an ageing workforce will result in less job opportunities for the young.

The government will also be outlining a new Pensions Bill today which will see the state pension age raise to 66 by 2020 for both men and women.

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