Posted: Thursday 16 December 2010
According to the BBC News website - CBI Calls For Retirement Age Delay - the CBI are lobbying for a delay in implementation of the Government's plans to abolish the default retirement age of 65.
From 6 April 2011, under the current proposals, it will no longer be possible for employers to issue new notifications of retirement on the basis of the default retirement age.
It is proposed that from 1 October 2011 the default retirement age and statutory retirement procedures will be abolished altogether.
The CBI fear that the current proposals, if implemented next year as they currently stand, will result in a raft of unfair dismissal and age discrimination claims given the lack of guidance in relation to how to deal with the radical change.
I suspect that the CBI are right. Given that the Government are still consulting on the issue it leaves very little time for guidance to get published and for employers to get up to speed with what they need to do to ensure compliance and to minimise the risk of claims. The abolition of the retirement age is one of the most significant changes to employment law for many years and will result in a number of significant issues for employers. I think there is much to be said for putting the proposals back to 2012.