Developing people to their full potential
Default retirement age
29/07/2010
On 29 July the Coalition Government announced a consultation on phasing out the Default Retirement Age (DRA) of 65. There has been a flurry of support from various bodies. Also there has been some cautionary comment about possible implications for capability management - an area previously highlighted on this web site by MDN Fusion Ltd.
No doubt employers will welcome the demise of retirement notification and employee request to continue working procedures. However the absence of a DRA and in most cases employers' "normal retirement age" will have implications for performance and absence management, capability procedures and perhaps health and safety policies.
The consultation document can be viewed at the Department for business innovation and skills where there is also information on how to make your views known.
It is important for small and medium sized business and the charity sector to respond before the closing date 21st October 2010. This date is a year before the Government propose to abolish the DRA and just 6 months before a transition period. MDN Fusion Ltd will continue to monitor developments and is ready to assist and advise clients.