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Knock-on Effect Of Government Review On Retirement Age

06 October 2009

The days of following correct procedure to dismiss an employee at 65 could well be numbered, says Kent employment lawyer Melissa Edmond.

In any event, employers are likely to await the Government’s promised 2010 review of the default retirement age (DRA) with a certain amount of trepidation, she feels.

Melissa, a lawyer with leading regional law firm Furley Page’s employment team – singled out by independent legal guides Chambers UK and The Legal 500 – makes her comments following the recent High Court ruling that subject to an employer following strict guidelines, it is still legal for employees to be retired at 65.

But in the high-profile Heyday case the court found the arguments against the DRA compelling, says Melissa who thinks it’s very probable it will either be abolished or raised in 2011, following the 2010 review.

She explains: “Although the recent decision appears to deal a blow to those willing and able to work over the age of 65, it’s difficult to see how the Government can justify this stance in the long term when the pension age is set to increase from 65 to 68 between 2024 and 2046.

“If the DRA is abolished employers run the risk of unfair dismissal and age discrimination claims if they force employees to retire at 65. It also raises another issue. Without a DRA, employers may find workforce planning difficult and job-blocking by more mature members of staff could become a problem. Employers may be tempted to withdraw or reduce staff benefits across the workplace for fear of additional costs of providing for the over 65s.”

  • The DRA review was originally scheduled for 2011 but the Government has brought it forward a year because of economic pressures
  • employees still have a legal right to request to work beyond 65.

For further information on employment issues call Melissa Edmond on 01227 763939

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