Thursday 13 January 2011

Default Retirement Age to be Axed

The government have confirmed that the default retirement age (DRA) will be phased out this year, meaning that employers will no longer be allowed to dismiss staff because they have reached the age of 65. Employers will not be able to issue retirement notices to employees after 30th March 2011.
Currently an employer can issue an employee with a notice to force retirement at the age of 65 without paying any financial compensation, with the normal legal obligations in place such as a six month previous meeting and relevant notice.

With this change from the government I encourage employers to hold ongoing communications with their staff to establish their plans, since employees will then have the power to decide their own retirement date.

Wednesday 12 January 2011

Wondering what Employment Law changes are due in 2011?

Here's a brief guide to pending Employment Law updates due in 2011.

  • Default Retirement Age (DRA) - The government has confirmed the phase out the default retirement age. They have announced that the DRA will be axed from October 2011. From this date employers will be prohibited from retiring a member of staff using the DRA. If an employer issues a notification of retirement before 30th March 2011, they will be able to retire the employee if their date of retirement is before 1st October 2011. After this date they can only retire an employee using this method if they can objectively justify it.

  • Right to request flexible working extended to parents of children under 18 - From April 2011, the right to request flexible working will be extended to parents with children under the age of 18 years old. Previously this has only been available to parents with children under the age of 17, or under the age of 18 if the child is disabled, and also for employees who care for adults aged 18 or over.

  • Equal rights for agency workers - Coming into force in October 2011 will be The Agency Workers Regulations 2010, which will mean agency workers will be entitled to the same rights as permanent staff after 12 weeks in a job. This will include the basic working & employment conditions, including their pay and holidays.

  • Additional paternity leave regulations - From April 2011 employed partners will have the right to take up to six months extra leave, provided the mother has returned to work before using her full entitlement to maternity leave. This regulation will only affect parents with children due on or after 3rd April 2011.