The coalition government is considering scrapping the default retirement age as from October next year.
Under the present legislation, staff can be asked to retire as soon as they reach retirement age, irrespective of whether they want to remain working.
The new proposal has been put forward by the Department for Business, Innovation and Skills and takes into consideration the fact that we now have a longer life expectancy, along with a healthier lifestyle. If this proposal is implemented, workers will be allowed to decide when they wish to retire from their position.
The employment relations minister, Edward Davey, said that more people than ever wish to extend their working lives and they should not be discriminated against simply because of their age.
Older workers have a wealth of experience and talent and they have a vital role to play in both the UK’s economic recovery and its long-term prosperity.
Employers groups, UK unions and employers themselves have welcomed the plans. Yell’s head of national resourcing, Andrew Groves, said that the change had the potential to help employers address skills shortages. However, many employers will have to change their attitude and appreciate that whilst young people may be fast paced, more experienced employees already have the ability to help businesses prosper.
Brendan Barber, the general secretary of the TUC, also welcomed the plans but he feels that the government could go even further by allowing a phased in retirement. He points out that many people don’t want to be working full-time one day and stop completely the next.
Some people are concerned that young job-seekers will find it harder to secure employment if the proposal is implemented. The REC says that does not need to be the case providing the government has a pro-active agenda to create jobs for people of all ages.
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