Posted: Friday, 4 January 2019 @ 13:43
So we know that the Default Retirement Age (DRA) is to be phased out this year, the government has confirmed.
The BBC observe that this means employers will no longer be allowed to dismiss staff just because they have reached the age of 65.
The Department for Business said that as well as benefiting individuals, "the freedom to work for longer will provide a boost to the UK economy".
Presently, firms can use the DRA to make staff retire at 65.
Ditching the DRA was first proposed by the coalition government in July last year - largely to tackle issues around the ageing population and the shortfall in pension savings.
John Cridland, Director-General Designate of the CBI, said the government's new guidance was inadequate and did not deal with how firms could retire staff if they were no longer capable of doing their jobs properly.
"There is not enough clarity for employers on how to deal with difficult questions on performance," he said.
"Less than three months is not enough time for businesses to put in place new procedures.
In my experience this is bound to lead to more litigation and yes lawyers making more money.
Here is why.
1 The short time for implementation. There is bound to be confusion on what to do and will lead to lawyers testing the waters by getting legal judgments.
2. The financial stakes are so high. If a worker sues in the Tribunal the potential losses are huge becausue of the difficulty for the employee in securing new employment. Remember a Claimant's losses will be capped if he or she finds new employment.
3 There is a danger that elderly workers will able to draw inference of age discrimination if they are subject to an attempt to dismiss. More incentive for lawyers to get involved. Age Discrimination cases are not subject to a statutory cap and potentially unlimited in value.
Justin Patten, Employment Lawyer