Industry warns of insufficient time to plan for removal of default retirement age

Currently employers can make staff retire at 65 regardless of their circumstances but this is set to change as people are living longer, healthier lives. Employment Relations Minister Edward Davey said: "With more and more people wanting to extend their working lives we should not stop them just because they have reached a particular age. We want to give individuals greater choice and are moving swiftly to end discrimination of this kind. Older workers bring with them a wealth of talent and experience as employees and entrepreneurs. They have a vital contribution to make to our economic recovery and long term prosperity." However, EEF has criticised the short timetable which dictates that the default retirement age will be phased out from April 2011; it believes manufacturers will have insufficient time to prepare for such an important change. The organisation also believes the change could lead to an increase in employment tribunal claims from older employees who believe they have been unfairly forced to leave their job. In addition, manufacturers also need an explanation of what they feel are contradictory messages from the government. On the one hand, employers are being encouraged to take on more young people to reduce youth unemployment but, on the other, the government is making it more difficult for employers to plan for changes in their workforce by phasing out the Default Retirement Age. David Yeandle, EEF's head of employment policy, said: "Many manufacturers will be seriously concerned about this change in policy which will make workforce planning more difficult. The proposed timetable also gives employers virtually little or no time to alter their policies and practices before such an important change in employment legislation is introduced. "There is also a real danger that it could open a pandora's box with the onus being placed on employers to prove whether older employees are capable of continuing in their current role. Inevitably, this could lead to employment tribunal cases from some older employees who have been dismissed rather than allowed to retire."