Default retirement age 'to be axed'

The default retirement age (DRA) will be axed from October this year, meaning employers cannot force staff to stop working at 65.

According to the government, the fact people are living longer, healthier lives has encouraged it to take measures to account for the changing demographic.

Commenting on the phasing out of the DRA, John Cridland, deputy director-general of the Confederation of British Industry (CBI), said: "The decision to abandon the DRA leaves business with many unresolved problems, and the Government’s timetable to scrap it will give companies little time to prepare."

"Scrapping the DRA will leave a vacuum, and raise a large number of complex legal and employment questions, which the government has not yet addressed. This will create uncertainty among employers and staff, who do not know where they stand."

Mr Cridland suggested a code of practice would be the only way for issues to be addressed and there will need to be changes in the law to deal with "difficult employment situations" effectively.

Search our research reports to gain an insight in to the latest management issues.