Removal of Default Retirement Age Concerns Manufacturers

The Engineering Employers Federation (EEF) has criticised the short timetable being proposed before the Default Retirement Age is phased out in the UK from April 2011, which it believes will give manufacturers insufficient time to prepare for such an important change.

EEF also believes it could lead to an increase in employment tribunal claims from older employees who believe they have been unfairly forced to leave their job.

David Yeandle, EEF’s Head of Employment Policy, said: “Many manufacturers will be seriously concerned about this change in policy, which will make workforce planning more difficult. The proposed timetable also gives employers virtually little or no time to alter their policies and practices before such an important change in employment legislation is introduced.”

“There is also a real danger that it could open a pandora’s box with the onus being placed on employers to prove whether older employees are capable of continuing in their current role. Inevitably, this could lead to employment tribunal cases from some older employees who have been dismissed rather than allowed to retire.”

EEF believes manufacturers need an explanation of what they feel are contradictory messages from the government. On the one hand, employers are being encouraged to take on more young people to reduce youth unemployment but, on the other, the government is making it more difficult for employers to plan for changes in their workforce by phasing out the Default Retirement Age.

EEF also believes manufacturers will need practical support and assistance from the Government to help them cope with the practical implications of this legislation. In particular, this will include

· guidance on how they can objectively justify having a specified retirement age for some groups of employees because of the nature of their work

· retaining the ability to have discussions with employees about their future employment and retirement plans as they approach State Pension Age.

SOURCE: EEF

Edited by Ben Lobel