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News - 11 April 2011

The Default Retirement Age (DRA)

The scrapping of the default retirement age of 65 means that employees can no longer be obliged to leave their jobs simply because they have reached 65 in the case of men and 60 in the case of women.

The Department of Business says it will provide a boost for the UK economy, while The Employment Relations Minister Edward Davey told the BBC

"I think this [change] is really beneficial and should not be the problem some people suggest,"

The change means that from 6 April, bosses will not be able to issue any notifications for compulsory retirement using the DRA procedure.

Between 6 April and 1 October, only those people who were told before 6 April, and who are due to retire before 1 October, can be compulsorily retired using DRA.

Finally, after 1 October, employers will not be able to use DRA to force staff to retire.

However, individual employers will still be able to operate a compulsory retirement age "provided that they can objectively justify it".

Lavinia Newman, Founder of ABDS says:

"Employment law changes are causing great concern among employers, who, instead of concentrating on running their business, have to cope with more and more shifts in employment law. Every change, no matter how small, costs employers time and money. Practical steps are needed to help free businesses from red tape."

If you need any help and advice on this or a similar matter don’t hesitate, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar NOW to discuss how ABDS can help in all your financial planning and business advice.

ABDS of Southampton, for all of your Financial and Business Development requirements.

Tel: 023 8083 6900  E-mail: abds.marketing@netaccountants.net

For a full list of ABDS’ News Briefings go to: www.netaccountants.net

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