The coalition government has announced plans to phase out the ‘default retirement age’ (DRA) – the provision that allows employees to be forcibly retired at 65. The CBI is not so keen, arguing the DRA enables businesses to plan and develop their workforce. There are also concerns that losing the DRA might prompt more age-based litigation from employees who are dismissed on incompetence grounds rather than retired. We will discuss how to manage the transition to retirement in a post-DRA world, looking at practical lessons from countries and employers that already operate without one.
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