New rules for retirement warnings

By THIS IS MONEY
Updated:

 

BOSSES will have to give employees six months warning before retiring them, Trade Secretary Alan Johnson announced today.

Employers can currently decide that someone is too old for their job at any age. But they have to have a good business case for retiring someone under 65, and consider all requests to keep working.

And they will have to write to those they are pensioning off six months before they are forced to leave. The new measures, the final stages of a European Employment Directive, are due to come into force by 1 October next year.

They also include a ban on age discrimination in recruitment, promotion and training, and remove the upper age limit for unfair dismissal and redundancy rights.

Everyone should be able to continue working if they want to, Mr Johnson said. 'This is not about forcing people to work longer, it is about freedom to choose,' he said.

'To thrive in a a competitive market British business increasingly bases its employment and training decisions on talent not age. Employers know that they cannot afford to ignore the skills of any worker - young or old.

'People need to be able to plan for their future, and retirement should not come as an unexpected surprise. The duty for employers to give at least six months notice will help individuals make informed decisions about retiring.

'These regulations are an important step forward, ensuring individuals benefit from important new rights and opportunities while allowing business to operate productively and fairly.'

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