A survey of employers’ attitudes to the abolition of the statutory retirement procedure suggests that the majority of employers are doing without a default retirement age. The survey of senior HR professionals in the UK, undertaken by the law firm Norton Rose, reveals, among other things, that only 3% of employers intend to retain a default retirement age, and 22% believe they now have less capacity to take on younger employees.
The survey’s results are included in a report, ‘A retirement revolution – Life after the default retirement age’. Other findings include:
- 46% of employers felt that the phasing out of the default retirement age will have a negative impact on their business, making it harder to manage older employees out of the business;
- 86% of employers are letting employees over the age of 65 continue in the same role;
- nearly half of employers are considering flexible working arrangements for over 65s;
- nearly half of respondents who have changed how they discuss retirement with employees now wait for staff to bring up the issue, while a quarter now use their appraisal system;
- 76% of respondents have not given line managers any additional training on retirement conversations; and
- only 11% of employers recognise the potential benefit of retaining experienced employees more easily.
The Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011 mean that any purported retirement dismissal notified since 6 April, if not objectively justified, amounts to age discrimination under the Equality Act 2010. Transitional provisions meant that retirements notified before that date, but taking effect after it, may be lawful, but only if the employee reached 65 by 1 October 2011.
For a free initial consultation please call 01202 499255 and Kate or Paul will be happy to discuss any questions you may have.
Comments