The Government must address business concerns that new retirement rules coming into effect next month which may lead to a surge in age discrimination claims, a Lichfield employment law expert has warned.
Lita Kirwan, Consultant at Bradin Trubshaw & Kirwan LLP, has spoken to local companies who are worried about the changes, which will prohibit staff being forced into retirement at 65 from April 6 unless there is an objective justification to do so.
Lita said:
“Employers must be able to ask their staff when they plan to retire as part of routine succession planning without the threat of being accused of ageism. Going forward, it is essential that employers can still openly raise the issue of retirement with staff without risking a potential discrimination claim.”
ACAS is advising that employees approaching current retirement age are asked about their future aspirations within the business but that this applies to younger members of staff also.
Employers will no longer be allowed to retire staff automatically when they reach 65, but businesses and under current legislation are not entitled to have straight forward discussions with them without providing grounds for a potential claim.
The solution, claimed Lita, is to introduce “protected conversations” based upon current ‘without prejudice’ discussions. This could be a recognised formal conversation where an individual sits down with their line manager and potentially a member of human resources or a trade union representative to disclose whether they are considering retiring and when. The process would need primary legislation and could be included in the Government’s forthcoming Employment Bill, she said.
Lita argued:
“This idea would help employers plan. It would give them a space to discuss retirement realistically with their employees within set guidelines, without the risk of age discrimination claims.”
She added that the majority of employers she had spoken with would rather not see the right to retire staff scrapped and were disappointed with the new legislation. The onus is now on the Government to make the changes workable, she said, rather than cause costly tribunal claims for employers trying to focus on growth.
