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EMPLOYERS ADVISED TO STAY AHEAD OF NEW DEFAULT RETIREMENT AGE LAW
Local businesses are being advised to ensure their retirement and employment policies are water-tight ahead of a law passing on April 6 that means people aged over 65 will no longer be automatically retired.
Between April 6 and October 1, only people who were notified before April 6, and whose 65th birthday is before October 1 can be compulsorily retired using the default retirement age (DRA).
After October, employers will not be able to use the DRA to compulsorily retire employees who have reached the age of 65.
Wiltshire employment law specialists, Lemon&Co Solicitors, say the knock-on effect of this is that any dismissal of an employee after this date on grounds of retirement will be age discriminatory, unless it can be objectively justified. It would also be regarded as an unfair dismissal, unless a fair reason for the termination of employment can be established.
It remains to be seen whether employers will be able to justify company-wide retirement ages and what alternatives there will be to compulsory retirement.
Lemon&Co’s employment solicitor Lauren Harkin said: “The law changes many things for employers and there are lots of potential pitfalls.
“These can range from knowing what to do with existing staff who still want to retire when they are 65 to dealing with the issues around maintaining and dealing with an ageing workforce.
“In addition, businesses should consider what amendments need to be made to company policies and procedures in order to comply with the new law.
“This has already proven to be a highly talked about and visible piece of employment legislation so people will be more aware of their rights – this means that employers really will have to get their heads round it to be able to deal with the changes appropriately.”
The law is being passed as the Government believes the move will give people more choice about when to stop working, and, there is hope that it will provide a boost to the UK economy. However, the decision remains controversial given the huge number of under 25s in the UK that remain unemployed.
Currently the DRA enables employers to make staff retire at 65 regardless of their circumstances, but the government feels the rules must change as people are living longer, healthier lives.
Lemon&Co are hosting a free seminar for local employers on May 10 at 4pm to find out more about how they can protect their businesses and employees. Contact Lauren Harkin on 01793 553954 or email lauren.harkin@lemon-co.co.uk to book your place.
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Local businesses are being advised to ensure their retirement and employment policies are water-tight ahead of a law passing on April 6 that means people aged over 65 will no longer be automatically retired. ...</p>
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