Government Decision to End DRA Is Not Good for the Youth
The Government has recently announced to end the Default Retirement Age (DRA) in the
Melissa Edmond, employment lawyer from law firm Furley Page, disagreed with the opinion of the Age UK’s director Michelle Mitchell that this decision is good for all. She feels that it is going to aggravate the problem of unemployment of youth in the country.
She also believed that it would have been wise, if the Government had decided to raise the age of retirement rather than to abolish it.
Now, the employers will face problems from the rising claims of unjust dismissal and age discrimination by the employees. She further, argues that this decision would make it difficult for the employers to appoint new and young employees. They may also reduce or stop spending on the employees to avoid covering the costs of the older employees.
The employers have two options. They could solve all the pending retirements, which were notified before April 6, 2011, and are going to take place before October1, 2011. They can discard the system of DRA after the deadline. Second option is to follow the old system of retirement. However, once DRA is scrapped, it would be unlawful to use the old system. They may face charges from the tribunal, and will have to fight to justify their stand.
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