Business groups have urged the government to delay the scrapping of the Default Retirement Age (DRA).
The controversial law, which allows employers to sack workers once they reach the age of 65, is set to be abolished next year. But the Confederation of British Industry (CBI) has warned that in some cases the scrapping could cause “a serious problem for all involved.”
Under the current rules, employers can lay off staff when they turn 65 without having to pay any redundancy compensation. The law has long been criticised by unions and age concern groups, who say that it is discriminatory and devalues the contributions of older workers.
Brendan Barber, general secretary of the TUC, said: “It cannot be right that workers lose their protection against arbitrary dismissal overnight upon reaching 65.”
But business groups have opposed the abolition. They now say they want further clarification of unfair dismissal rules before the DRA is withdrawn.
John Cridland, director general of the CBI, said: “In certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone. The DRA has helped staff think about when it is right to retire, and has also enabled employers to plan more confidently for the future.”
The government has said it is committed to making the transition process as simple as possible, and that it will offer further guidance to employers.
