As longevity increases, many more people are choosing to work longer, and we know that two-thirds of companies already manage their staff successfully without a fixed retirement age. Our aim now is to offer as much guidance and support as possible for employers who are not yet operating without the DRA, making the transition as fair as possible.
From 6 April, the DRA procedure can no longer be used to notify employees of their retirement date. If, however, notifications have been given before 5 April, employers will be able to continue with the retirement process as long as their employee reaches 65 by 30 September this year.
Although we are removing the DRA altogether from 1 October, we recognise employers may still need to operate a compulsory retirement age in exceptional circumstances. In such cases, we will ensure they are able to do so, providing they can objectively justify the reason.
Managing without a fixed retirement age can bring great rewards for both employers and staff. Many companies across a range of sectors report real business benefits in operating without the DRA and employing older workers as part of a mixed age force.
We know that age is not an indication of whether someone is able to do their job well, and that productivity does not decrease with age in most jobs. It is therefore important for employers to look at how they best maximise the skills set of their workforce across all ages - since both young and old employees can make a significant contribution to business.
Research shows that older workers can bring qualities such as accuracy, commitment and punctuality to their roles, as well as having a more responsible attitude to health and safety risks, based on their years of experience in the workplace.
With skills shortages and changing labour markets, it makes economic sense to utilise all the available expertise older workers may have to offer. Managing staff without the DRA could help maintain a skills base that may prove vital for the future growth of a business.
For more guidance on how to manage staff without a fixed retirement age, employers can go to:
www.businesslink.gov.uk/agepositive
www.acas. org.uk
