Leaked report reveals Government plans to scrap compulsory retirement ages - December 7th 2004

This news item is no longer current - see news item dated 15th December 2004

The Government is reportedly set to announce its intention to abolish compulsory retirement ages as one of the measures designed to implement the age discrimination laws coming into force in October 2006. The Government’s intention is, according to Personnel Today, contained in a leaked letter that has been circulated to cabinet ministers. The letter allegedly proposes that compulsory retirement ages will not be rendered unlawful until 2011, giving businesses time to adapt to the change. However, since European Age Discrimination laws must be brought into force in the UK from October 2006 this extension of time until 2011 may be unlawful.

The Confederation of British Industry (CBI) claims that the radical change of scrapping complusory retirement ages will mean employers will find it virtually impossible to get rid of older workers who want to work past 65. This is not the case but employers who want to dismiss older workers will have to have a business justifiable reason for the change and follow a fair procedure if they want to rely on that reason to dismiss. It will mean that employers will face more tribunals, unfortunately. As such, we can expect strong protests when the proposals are officially announced.

The disclosure comes in a leaked letter, dated 19 November, which has been circulated to cabinet ministers. The move will not affect entitlement to the basic state pension, which will remain payable from the age of 65.

The change will bring the UK into line with the US, which scrapped the retirement age in 1986, and also most of the EU, which is also being forced to make the change.