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| Employers use forced retirement to cut workforce | ||||||
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| Release date: 07 Mar 2010 | ||||||
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| Businesses used the mandatory retirement age as an easy alternative to making redundancies last year, according to charity Age Concern, which found that the number of employees forced to retire more than doubled in 2009.
Research from Age Concern found that 100,000 workers aged 65 and over were forced to leave their jobs last year, compared with a combined figure of 50,000 for 2007 and 2008. "The default retirement age legislation allows employers to force people to retire at 65," said Age Concern spokesman, Stefano Gelmini. "During the recession we believe employers have relied more heavily on being able to retire people as an alternative to redundancy. "It's convenient for businesses and it offers a hassle-free, cheap alternative to making redundancies," he added. "Although employees have the right to request to continue working, if the employer wants them to leave, there's nothing an older worker can do as long as the employer follows the correct process. It's not fair that older workers are being penalised, even during a recession, and the current law allows employers to discriminate based on age." By law, employers must inform employees reaching 65 of their intended retirement date in writing between six and 12 months in advance. The employee then has the right to request to continue working and the employer must meet them to discuss the request, but does not have to provide any justification if they refuse it. However, British Chambers of Commerce spokesman, Sam Turvey, disagreed with Age Concern's claims. "The issue is not as black and white as Age Concern is making it out," he said. "The recession has hit everyone, so more redundancies have also been made and more people are unemployed in general. It is not the case that employers are routinely trying to get rid of their older workers. "Many older workers have business knowledge and have been there for years, which makes them extremely beneficial employees," he added. "The default retirement age is a trigger point at all times, not just in recession, for the employer and the employee to have a conversation about the employee's future with the company. If the employer doesn't feel that they are able to keep the employee on, that is their decision, but the retirement age is not misused by small firms." Forum of Private Business spokesman, Chris Gorman, said that firms that are planning to downsize might retire staff aged 65 or over as part of their strategy. "Businesses don't have indefinite financial reserves and it would be nice if a firm never had to make people redundant or retire them, but the reality is that they have to make tough decisions," he said. "It is not age discrimination to retire people when they reach 65 - it is a legal process." The Government was due to review the retirement age in 2011, but the economic climate has prompted the Department for Work and Pensions to bring it forward to 2010. The results of the review are due in the spring. |
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