The Confederation of British Industry (CBI) criticised the government’s handling of scrapping the default retirement age (DRA), claiming employers have been given insufficient advice on how to adapt.
Following the coalition’s confirmation that the DRA is to be phased out, CBI director general designate John Cridland claimed many firms will be left with something of a headache when the reforms come into effect.
“The government’s decision to scrap the DRA leaves businesses with a number of difficult practical issues,” he commented. “The impact on employers, especially smaller ones, will be considerable. There is not enough clarity.”
Mr Cridland added that the issue of appraising the performance of older employees is likely to prove particularly sensitive, with companies given just three months to prepare for the abolition of the DRA.
Earlier in the week, Liberal Democrat minister Lynne Featherstone unveiled new guidelines for entrepreneurs on the positive action reforms recently outlined in the Equalities Act.
Posted by Ross George
Employers need to be proactive on this topic and should be doing the following:
1. Review and amend contracts and policies
2. Consider whether you can objectively justify an ‘EJRA’
3 Train your managers and HR staff on new legislation
4. Review timetables for retiring staff and whether the transitional arrangements will apply?
5. Implement practices and procedures for managing your older workforce (although these should be fairly applied to all the workforce).
Above all, be ready for the changes and do not bury your head in the sand.