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Posts Tagged ‘EFA’

Scrapping of forced retirement at 65 welcomed by employers

July 29th, 2010   By   Filed Under: Everyone

Government plans to abolish the default retirement age from October 2011 have been welcomed by employers, employers groups and UK unions as a victory for choice.

At the moment, employers are allowed to force staff to retire at the age of 65 without having to give a reason.

Andrew Groves, head of national resourcing at Yell, welcomed the change, telling Recruiter that the change could potentially help employers redress skills shortages.

However, he said that for this to happen employers would need to change their attitude first. “It will be tough for employers to overcome [their attitude], as for many their instinct is that younger people are faster paced and more aggressive about where they want to get to.”

Rachel Krys, campaign director of the Employers Forum on Age (EFA), says: “The EFA works with many companies who have removed the mandatory retirement age such as B&Q, Nationwide, JD Wetherspoon, BT, The Co-operative and M&S to name but a few; and they are already reaping the benefits. Age is not a proxy for ability.”

Chris Ball, chief executive of The Age and Employment Network (TAEN), adds: “This move can only be a first step. Many employers will need to adopt a totally new mindset… It will certainly mean providing opportunities to train or re-train and to work more flexibly and, crucially, actually recruiting people in their 50s and 60s where they may not have done so in the past.”

Welcoming the plans, TUC general secretary Brendan Barber says: “This is a welcome move. It cannot be right that workers lose their protection against arbitrary dismissal overnight because of their age.

“But we need to go further to give people real choice about how and when they retire with new rights for flexible working. This can end the retirement cliff-edge where people work full-time one day and stop work the next. Many would prefer a phased retirement.

“Not everyone wants to work longer and may not be fit enough to continue. Today’s move should be about choice, not an expectation that people will work longer so don’t need decent pensions.”

Employment relations minister, Ed Davey, said: “Older workers bring with them a wealth of talent and experience as employees and entrepreneurs. They have a vital contribution to make to our economic recovery and long-term prosperity.”

The CBI has said the move will create uncertainty.

Dangers of scrapping default retirement age

June 28th, 2010   By   Filed Under: Everyone

Employers and recruiters should be aware of the implications surrounding the possible scrapping of the default retirement age, according to an employment lawyer.

As part of his Emergency Budget speech, George Osborne announced plans for the government to consult on how to scrap the default retirement age from April 2011.

Jo Broadbent, senior lawyer at Hogan Lovells, says that scrapping the default retirement age should be “on the radar” of both in-house and external recruiters and added: “They shouldn’t ‘park’ the issue.”

She suggested two ways companies could deal with its removal: “The first thing they could do is just accept that they have to operate without a default retirement age; the second is that companies could impose their own retirement age, but that could be difficult from a legal point of view.”

Campaign group the Employers’ Forum on Age agreed that it should now become an issue for employers: “The default retirement age is fundamentally discriminatory, based on the assumption that age affects someone’s ability to do their job.

“The Employers Forum on Age (EFA) has been campaigning against the default retirement age for many years and works with a number of employers, including many government departments, which report that operating without the default retirement age has resulted in significant business benefits.

“Employers who are currently using the DRA should start planning now to ensure they are ready for this change. Understanding the experience of employers operating without a DRA will be essential, and will give them confidence to allow employees to choose when they retire and to put the policies and processes in place to make the most of an age diverse workforce.”

The benefits of working for as long as one wants to are more than that of carrying on earning! It is a human desire to be with others in the ‘beehive’ of work, where the employee feels part of a collective contribution to the economy, country, world and it is becoming an accepted fact that good health, both physical and mental, come from a human being fully engaged in work.

The mandatory retirement age that many companies adopt of 65, should be scrapped and companies should look at B & Q & Tesco, who have a diverse age-group of employees, where the wisdom of experience, coupled with the bravery of youthful inexperience, is a strong, successful force. The mantra should surely be, “not work ‘til you drop, but choose when to stop”.

Sarah Johnson – Dylan