News Article - 24 May 2012
Category: Business

The Department for Business, Innovation and Skills (BIS) recently confirmed the default retirement age will be scrapped this year. From April 6th, firms will no longer have the power to force employees to stop work when they turn 65.

According to the BIS, there are currently 850,000 people over the age of 65 actively working in the UK.

Notice periods issued before April 6th must be effected by October 1st; after this window employees must provide consent if their employer wants them to retire. However, exceptions will be made for employers who can 'objectively justify' compulsory retirement, such as in air traffic control where reaction times may be critical.

Industry reaction has been generally positive; the Chartered Institute of Professional Development (CIPD) welcomed the news, pointing out that age is not a key determinant of capability and skill.

Rachel Krys, campaign director of age campaigners the Employers Forum on Age (EFA), said that employers will also see direct benefits from the move: "Business performance will improve when employees are used to their full potential, managed throughout their careers and not cast aside as they enter their 60s or encouraged to coast towards retirement.

"Some employers have been successfully managing without forced retirement for a number of years, proving that organisations can thrive without retirement and become leaders in their sectors."

Employers must prepare fully for the switchover for two main reasons. Firstly, employees will require the support of their company in making career decisions and employers that can't provide this support may alienate workers. Secondly, companies must adapt to an older workforce, which must be reflected in the recruitment and selection procedures.

Access HR software can help companies prepare by streamlining many common tasks including recruitment and selection. By automating these processes, managers can use the extra time available to ensure all parts of the business are prepared to cope with the change. In particular, this time will allow bosses to ensure all employees understand the options available and how the move will affect their everyday working life.

With only three months to go until the change, companies that haven't started planning should do so immediately. For more information on how Access software can help, please call us on 0845 345 3300.

Article keywords: The Department for Business, Innovation and Skills, BIS, retirement age abolition, Chartered Institute of Professional Development, CIPD, Rachel Krys, Employers Forum on Age, EFA, Access HR software

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