The Government is set to scrap the default retirement age (DRA) from April next year. The move will prevent older workers from being forced to retire at 65.
Currently, workers have to retire at that age unless their employer has opted out of having a mandatory retirement age, or they have been given permission to stay on.
Under the new plans, workers would not be made to stay on after 65, but they would have the option.
It is widely supported by workers and employers groups, and the Government says the extra money raised in taxes will be used to help support an ageing population.
Some businesses though are concerned that they will be left with staff who are too old to do their job.
There will be exemptions for certain professions, like police officers or air traffic controllers.
We see that the option to retain physically fit experienced staff will be an attractive one for many employers giving additional flexibility.
The counter argument is that it will reduce recruitment within the 16-24 year age group and keep unemployment at a higher level as the natural cycle of employment is being changed.
We don’t see it changing the demand for migrant workers who are prepared to do the jobs that Brits reject so we’ll be hearing Polish Worker’s voices on the High Street for a while longer.
Author: Chris Slay
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