Planning for retirement... 
When the government announced plans in the summer to scrap the default retirement age (DRA), which allows employers to make workers retire at 65, the proposals drew a mixed reaction.

Age campaign group the Employers Forum on Age, welcomed the move, saying that employers had nothing to fear from the change, which would help make the most of an “age diverse workforce.”

But John Cridland, then deputy director-general of the Confederation of British Industry (CBI), warned that the timetable for scrapping the DRA would give businesses little time to prepare.

Fast-forward a few months and today Mr Cridland, now the CBI’s director-general designate, is speaking out again.

Today he says that businesses value the skills, experience and loyalty that older workers bring while that a more active older population and pension shortfalls make it clear that people will want to keep working longer.

But – and it’s a big but – with just over three months to go before the DRA is axed in April, the government has so far failed to produce any guidance or draft regulations to clarify for employers or staff what the new legislative framework will look like.

Mr Cridland warns that “a legislative void is opening up” and calls for any changes to be delayed until April 2012 to address employers’ concerns, including a greater risk of tribunal claims. Meanwhile, the Department for Business, Innovation and Skills says it will be publishing guidance shortly.

Few of us would disagree with the department’s view that people should not be prevented from working because they have reached a particular age.

At the same time, we probably also feel more than a little sympathy for the businesses who will be at the sharp end of implementing a pretty significant change in employment law – and with time ticking away until April, are probably wondering just how well prepared they are going to be able to be do just that.

For more information, please visit www.glazers.co.uk

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