UK – British workers can no longer be forced to retire before 65, the British government has said.
British bosses cannot force their employees to take early retirement unless they can actually justify it.
This and other proposals aimed at cracking down on age discrimination at work were presented today by trade and industry secretary Patricia Hewitt and work and pensions secretary Alan Johnson.
The ministers are introducing a default retirement age of 65 to bring UK laws into line with the new European age-discrimination rules.
From 2006 onwards, UK companies will be banned from imposing arbitrary retirement ages, the government said.
Employees are allowed to work beyond 65, although employers will have the right to refuse.
“Age discrimination is the last bastion of lawful unfair discrimination in the workplace and we are committed to tackling it,” Hewitt said.
She added: “It is vital that we widen the pool of workers so that employers can make the most of the full range of talent and skills available. Research suggests that age discrimination costs the UK £16bn a year.”
Johnson said: "We want to establish a real change of culture in the workplace where people are judged on their skills and talents rather than their age.”
Employers’ group CBI welcomed the new proposals, saying they were “sensible and pragmatic”.
“It means people can ask to work beyond 65 and they will be able to do so unless there is a good business reason why not. This will be a big change from the status quo because contractual retirement ages below 65 will now have to go,” CBI boss John Cridland said.
But the proposals angered interest group Age Concern which said imposing a retirement age of 65 was “a complete U-turn” in government policy.
“This makes a mockery of the government’s so-called commitment to outlawing ageism, leaving the incoming age discrimination law to unravel,” said director Gordon Lishman.
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