Employers confused over retirement law

Bosses should carefully look at their employment contracts following the government's decision to scrap the default retirement age (DRA) next April.

The CBI urged ministers to put in place transitional procedures to allow workplaces to cope with the changes.

It also highlighted its members' concerns that employers could potentially face more legal action unless there is more clarification from the government about businesses' rights when dealing with older workers.

John Cridland, the CBI's director-general designate, said: "With the scrapping of the DRA in April, a legislative void is opening up. We need to modernise our employment law framework to ensure that it is fit for purpose.

"In the majority of cases this will not be an issue, but in a minority it will be a serious problem for all concerned"

The organisation called on the government to consider delaying the new legislation for a year, to simply tribunal procedures and to make clear what it means by the term objective justification to allow employers to force workers to retire.

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Published on: December 13, 2010

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