Jennifer Smith (Solicitor)Employers across Britain breathed a temporary sigh of relief with the recent High Court ruling that employees have no automatic right to work beyond the age of 65. However, it was made clear by the judge ruling on the case that forcing people to retire at 65 is unsustainable and needs reviewing.
The government has now asked businesses and individuals to submit evidence on the default retirement age, in time for the review taking place next year.
The evidence requested includes:-
the operation of the default retirement age in practice;
the reasons that businesses use mandatory retirement ages;
the impacts on businesses, individuals and the economy of raising or removing the default retirement age;
the experience of businesses operating without a default retirement age;
how could any costs of raising or removing the DRA be mitigated and benefits realized.
Minister for Pensions and the Ageing Society Angela Eagle MP said:
“As people live and work for longer, it is sensible that we have the debate on what works for business and individuals. The laws around employment and retirement need to reflect changes in economic and social circumstances.
“That is why earlier this year we announced we were bringing the review of the default retirement age forward to 2010. Today we are asking for evidence to be submitted by 1st February to allow that to happen.”
Business Minister Pat McFadden MP said:
“The default retirement age is a subject that employees, the business community, trade unions and charities all have a strong interest in.
We want to receive information from all of these parties as it is important that our review is based on robust, detailed and wide-ranging evidence.”
Please contact Jennifer Smith if you have an employment related matter on 0161 615 0656