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Review of retirement age brought forward

An employer's right to retire staff at the age of 65 could be ended as the government brings forward to next year a review on the default retirement age.

The move is a surprise, as employers' organisations had not expected a review of the system until 2011.

The Confederation of British Industry (CBI) have said that the decision is "disappointing, especially at a time when so many businesses are under pressure."

There are fears that a change to the current system could lead to a rise in overheads for companies and more unfair dismissal cases if employers have to justify retiring staff.

Under current rules employers can enforce retirement at 65, although staff have the right to request to work longer, a request that it is estimated is granted in around 80% of cases.

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Post Date: July 14th, 2009