Employers are currently allowed to dismiss staff once they reach 65
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Edward Davey, Employment Relations Minister, has confirmed government plans to phase out the Default Retirement Age this year
Employers are currently allowed to dismiss staff once they hit 65 under the Default Retirement Age (DRA) policy. New plans see the gradual phasing out of this policy in favour of one that allows employees to be judged on their ability rather than their age.
From the 6 April of this year, employers will no longer be able to enforce compulsory retirement using the DRA policy. In addition, between 6 April and 1 October, only employees notified of their compulsory retirement prior to the 6 April will be liable for dismissal. The final stage of the process sees all employers unable to issue DRA notices from the 1 October.
Edward Davey MP has confirmed that employers will still have the right to implement compulsory retirement to employees who reach 65 and are unable to carry out their work, ‘provided they can objectively justify it’.
The proposal to abolish the DRA by the coalition government in July has been met with mixed responses from employers. Some companies are calling for an extra year before putting the changes in place to allow a greater legal understanding of the plans.
By Jade Desumala
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