Fixed Retirement Age To Be Axed
Sector: General
29th July 2010
The government is planning to scrap the default retirement age in the UK from October 2011.Under the proposal, employers would not be allowed to dismiss staff because they had reached the age of 65. Activists, who have long campaigned against the rule, welcomed the proposal as a "victory" against ageism. Currently, an employer can force an employee to retire at the age of 65 without paying any financial compensation. The only obligation on an employer is to hold a meeting with the member of staff to discuss plans at least six months before their 65th birthday. At the end of that meeting it is entirely at the discretion of the employer whether or not to terminate employment.
'Unresolved Problems'
The government has launched a consultation process about scrapping the rule. Under the plans, no forced retirement notices could be issued after 6 April 2011- six months before the October change. The CBI business group criticised the speed of the proposed changes saying it left firms "with many unresolved problems".The government's timetable to scrap the default retirement age would give companies little time to prepare, it added. However, Rachel Krys of the Employers Forum on Age was delighted, saying it was "really unfair" that people had been forced out of jobs because of their age. "We have to stop these blunt discriminators," she added. The charity Age UK, which has led the campaign to end the default retirement age, also welcomed the government's plan. Last year it challenged the rule in the High Court, but was unsuccessful.
Source: BBC News
News Archive
27th October 2011
Visa profits jump 14pc as Consumers opt for Plastic
Visa's fourth-quarter profit rose 14pc, as cardhol...
30th September 2011
NBNK bids £1.5bn for Lloyds Branches Despite Cost of Credit
Lloyds Banking Group's attempt to drum up a compet...
20th September 2011
UBS under Pressure to Hive off parts of Business following Rogue Trader
Pressure is growing on UBS to hive off parts of it...