Friday, 25 June 2010

No age limit will bring extra burden

Shropshire employers will face an extra burden if the idea of axing the traditional retirement age of 65 goes ahead as planned.

Lynsey Woolley, from our Alpha Team, said the Government’s plans to abolish the default retirement age, and to extend the age when employees are entitled to take their pension to 66, would bring real challenges.

“The Government has been under pressure from many organisations who want the retirement age extended or removed completely. This means justifying a retirement age used by a company will be in its own hands if the default retirement age is axed, and companies will not simply be able to end an employee’s contract just because they turn 65.

“It will be vital for employers to monitor staff closely, as if they are asked to retire – whatever age the employer selects – there will need to be enough evidence to back up the decision.

On the positive side though, Lynsey said the decision to axe the age limit could help towards reducing age discrimination in the workplace. “It could have a dramatic impact on the way older workers are perceived, and on perceptions about their ability to contribute to the company.

“Tough decisions like this all create an extra burden for employers, but with people living longer, it’s clear that something has to be done to keep the balance right.”