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Scrapping default retirement age isn't good news for talented young employees

04 August 2010

The Coalition’s decision to scrap the default retirement age from April 6 next year has prompted a Kent lawyer to speak up for talented young employees struggling to find a foothold on the employment ladder.

Melissa Edmond, employment lawyer at leading regional law firm Furley Page, said: “Age UK’s director Michelle Mitchell has stated that ‘everyone stands to win from abolishing forced retirement’.  It’s a nice thought but I fail to see how the talented and entrepreneurial young ‘win’ when they are already banging their heads against the closed doors of the labour market.

Melissa argues that raising the default retirement age (DRA) would have created far fewer problems than scrapping it. Without a DRA employers will risk unfair dismissal and age discrimination claims for forcing workers to retire.

She adds: “Workforce planning will be difficult and job-blocking by the more mature members of staff may become a problem. Employers may also find themselves tempted to withdraw or reduce benefits to staff across the workplace for fear of additional cost of providing them to the over 65s.”

Employers have two choices, says Melissa. They can stop using retirement ages – although they can complete any retirements where the employee has been notified before April 6, 2011 and where the retirement will be complete before October 1, 2011.

The other option is to continue using a retirement age. However, when the DRA is removed, employers using retirement ages are likely to be challenged and will have to satisfy a tribunal that their retirement age is objectively justified. This won’t be easy to demonstrate, she warns.

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

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