Retirement Age to be Axed

The government is planning to scrap the default retirement age in the UK from October 2011.

Under this new proposal, employers would no longer be allowed to dismiss staff when they reach the age of 65.

Currently, when an employee reaches the age of 65 an employer can force the employee to retire without paying any financial compensation. Employers have a mandatory requirement to hold a meeting 6 months before the employees 65th birthday. At the end of this meeting it is at the employer’s discretion whether or not to terminate the employees contract.

Ageism Activists have campaigned against the rule for a long time, welcomed the proposal as a “victory” against ageism.

The government hopes these changes will encourage people to work for longer, against a background of an aging population, but some employers are worried that this may affect their overall management of the workforce and overall cost.

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