Employee Rewards and Benefits News
Default retirement age scrapped
Employers will no longer be able to force staff members to retire just because they have reached the state pension age of 65 years.
The new regulations which will come into effect from October next year have been widely welcomed by industry experts.
However, the speed at which the government is pushing for the move has been criticised by the Confederation of British Industry (CBI).
John Cridland, CBI deputy director-general, warned that the timetable chartered by the cabinet ministers is likely to leave businesses without adequate time to prepare for the change in retirement laws.
He said: "Scrapping the DRA [Default Retirement Age] will leave a vacuum, and raise a large number of complex legal and employment questions, which the government has not yet addressed. This will create uncertainty among employers and staff, who do not know where they stand."
There is pressing need for more than a mere code of practice to help employers strategise human resources and employee benefits planning, Mr Cridland added.
Posted by Anisha Ahmed
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