Employers who want their staff to retire at age 65 will be required to give at least 6 months notice and tell them about their right to appeal, under new proposals to comply with an EU employment directive. Under the new proposals, which will be put forward for consultation shortly, firms that fail to follow procedures could be directed to pay compensation by employment tribunals. If the plans were approved, employers would have to reconsider retirement decisions if requested by workers aged 65 and over, and would have to give good business reasons for the retirement of the employee.
The rules must be implemented by autumn next year to comply with the EU Directive, aimed at preventing age discrimination at work.
Our view
The odds are certainly stacked against employers. However, it is understandable that Governments do need people to work on later and not be a burden on the State.