December 13, 2010

New CBI boss calls for delay to retirement change

by Jan Harris

The incoming boss of the CBI, John Cridland, has called on the government to delay ending the default retirement age (DRA).

The DRA is due to be scrapped in April next year, allowing employees to continue working after the age of 65 if they wish to.

The collapse of pension funds over the last few years means that many people will need to work longer that they anticipated.

However problems could arise when employees want to remain in a job that requires a high level of physical fitness and without appropriate mechanisms in place to dismiss older employees, there could be an increase in unfair dismissal claims.

Mr Cridland therefore wants the unfair dismissal law to be clarified before the changes come in to effect.

The CBI estimates that a fifth of workers approaching the age of 65 could end up in a legal dispute with their employees, unless the government produces appropriate legal guidance.

The ‘capability review’ mechanism which is already in place to deal with such situations is ‘demeaning and disingenuous’ according to Mr Cridland.

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