The proposed abolition of the default retirement age (DRA) will have a huge impact on companies and how they operate. The proposals will be welcomed by many and are a logical step following Government announced changes to the age at which you will be able to draw your state pension. It is also illogical that you can dismiss an employee simply on the grounds of their age and current legislation goes against the principle that employers should not discriminate on the grounds of age.
Although the legislation will not come into full effect until 1 October 2011, transitional arrangements will be in place from 6 April 2011. This does not give companies much time to address the changes they need to make to their policies and procedures. All businesses, and particularly those without on site HR support, need to start planning for the new legislation soon. Consideration also needs to be given to the impact on any benefits, for example, private medical and permanent health insurance.
It will be important to get good advice on how to incorporate the new legislation into employment procedures and I can help in this regard. Simply visit my website for more information about my services and for contact details.
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