Labour plans to end compulsory retirement

News Article - 29 January 2010
Category: Regulatory

Deputy Labour leader Harriet Harman recently announced plans to scrap the UK's compulsory retirement age of 65, labelling the law 'arbitrary' and suggesting a significant policy change is imminent. Under the compulsory retirement law, workers who do not want to retire can still have their employment withdrawn without redundancy payments when they turn 65.  

The legislation has been controversial since first introduced four years ago, and calls for it to be scrapped have been made regularly over the past year. Critics argue the current economic climate makes it untenable for workers to lose job security as early as 65. In September 2009, a senior judge spoke out against the compulsory retirement age, claiming it was unlikely to be lawful considering the rate of recession.

Some commentators see the shift as part of a major refocus on the economic position of the elderly in the UK, and a wider social move to prevent UK residents from being stereotyped by age. Many large charities, such as Help the Aged, argue the elderly contribute significantly to the health of the economy and should not be ignored, particularly with the economic climate as it is.

Pledges of support for the elderly are expected to continue as the major political parties attempt to win voters before the upcoming general election, due to take place on June 3rd or before. As the pre-election coverage gains momentum, party manifestos and conferences are likely to be used as grounds to appeal directly to the elderly.

Companies should watch the election coverage closely to ensure they remain abreast of changes to employment law and how they will affect key business areas. The economic downturn, in addition to the pressure exerted by charities supporting the elderly, is likely to result in changes to the compulsory retirement age. Without the infrastructure in place, your business may be unable to adapt successfully to employment law reforms.

Access payroll software helps organisations of all sizes adapt to legislation changes efficiently. The package is developed modularly - major legislation changes, such as those made following a general election, are built into updates to ensure organisations remain fully compliant at all times. Patches are also regularly released to ensure legislation reforms enabled throughout the year are integrated with IT systems as quickly as possible.

For comprehensive information on how Access Payroll software can help businesses adapt to legislation reform, please call 0845 345 3300.

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