According to a study by law firm Irwin Mitchell, which questioned CEOs and MDs at 141 companies across the UK, almost half (49%) of businesses thought the DRA legislation had been introduced too quickly, with six out of ten stating the Government had not communicated the changes effectively to the business community.
The Coalition Government confirmed in January 2011 that it was going ahead with Labour's plans to abolish the default retirement age. From 6 April, statutory retirement procedures will not apply and employers will need to "objectively justify" the retirement of an employee once they reach the age of 65, or rely upon one of the other potentially fair reasons for dismissal.
John Hayes, employment partner at the London office of Irwin Mitchell, said: "While the removal of the statutory retirement procedures will relieve an administrative burden on employers, a failure to act reasonably and fairly could leave employers open to claims on the grounds of both age discrimination and unfair dismissal. Employers are right to be concerned and undoubtedly should tread carefully."
The survey also revealed significant concerns in relation to other employment red tape, with 40% stating that forthcoming legislative changes in relation to the Equality Act and paternity laws will have a negative impact on their company.
Just under two-thirds (65%) of businesses claimed they were concerned there would be an increase in the number of employment tribunals in 2011 compared to 2010.
Earlier this year, the Government announced a set of measures aimed at reducing the number of employment tribunal cases. These included the introduction of a compulsory reference to ACAS, an increase to two years in the qualifying period for an employee bringing a claim for unfair dismissal and also a 'filing fee' to be paid by the claimant, to dissuade frivolous claims.
Irwin Mitchell's survey found 76% of business leaders agreed with proposed plans to introduce a fee for employment tribunals, to try to eliminate frivolous and vexatious claims.
