Government plans to abolish the default retirement age have been slammed by the Forum of Private Business.
The small business support group says government plans to scrap the employer's option to oblige staff to leave at the age of 65 would make it more difficult for employers to plan ahead and result in an “undignified and humiliating end to a career for most staff”.
But if the Forum has any hope of the plans failing to make it through parliament, then they could be disappointed given that Labour originally proposed the change themselves when they were in government. However, the Forum also pointed out that the previous administration defended the default retirement age in the High Court, arguing that it brings numerous social benefits.
Instead of effectively forcing workers over 65 to retire, firms will only be able to dismiss them grounds of incompetence, which the Forum believes could be awkward for employers and humiliating for the employees. It will also raise the spectre of a surge in employment tribunals.
Removal of the default retirement age will cripple some small businesses by removing the tools that help them to plan for the future
Forum Spokesman Chris Gorman
In recent survey, just 4% of Forum members felt removing the default retirement age was justifiable.
Forum spokesman Chris Gorman says: "We are by no means disputing the valuable skills and experience older people bring to the workplace. Many small businesses are happy to keep on members of staff well into their late 60s and 70s – indeed, many Forum members themselves are well over 65.
"However, removal of the default retirement age will cripple some small businesses by removing the tools that help them to plan for the future. Most employees are certainly competent enough to work beyond the age of 65 without a significant deterioration in their abilities.
“However, for those employees not willing to leave voluntarily, there will eventually come a time when the needs of the business will have to be considered.
"In the absence of a default retirement age, the only viable option available to an employer is a capability dismissal based on the declining competence of the worker. We believe this would be an undignified and humiliating end to a career for most staff."
