The Confederation of British Industry has urged the government to delay planned changes to the retirement age for a year. It warned that employers face “huge uncertainty” and a greater risk of unfair dismissal claims unless there is more legal clarity over the plans. It is thought that the ageing population and the shortfall in pension savings make it inevitable that people will want to work for longer. The CBI has stated that although businesses value the skills, experience and loyalty that older workers bring, the default retirement age has in the past helped staff think about when it is right to retire, and has also enabled employers to plan more confidently for the future. The CBI also added that the state pension age should be used as a “milestone” after which employers would no longer have to offer occupational benefits.
However, the Department for Business has said it is committed to helping employers adapt and would be providing guidance and it still remains the opinion of many that scrapping the default retirement age will be a welcome move by the government as it should not be the case that workers lose their protection against arbitrary dismissal overnight upon reaching 65.
If you have any questions surrounding retirement for your staff, give us a call and we’ll happily advise you on how to manage your staff fairly and commercially.
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