Later retirement will mean more employment tribunals - claim
A Black Country employment lawyer is warning businesses could face an increase in "costly tribunals" brought on by "disgruntled workers” following the government’s move to increase the retirement age.
Nick Vernon of Higgs & Sons believes the recently proposed changes in the law on the default retirement age will lead to more employment tribunals.
The government recently published a consultation document setting out its proposals to phase out the current default retirement age of 65 in October 2011.
Vernon said: “In a statement, the Department for Business, Innovation and Skills said it estimated the changes would lead to a reduction of between 200 and 400 employment tribunals every year.
“However, it’s our belief that the exact opposite may occur because employers in the region will be forced to prove whether or not older employees are capable of continuing in their current role at 65. We believe this will lead to an increase in older employees taking their employers to employment tribunals claiming age discrimination.
“The government has also claimed the changes will save employers' money, but it appears to be underestimating how much businesses will spend in costly tribunals taken by disgruntled workers who are classed as incapable of working in their current role once they pass 65."
A six-month transition period from the existing regulations will begin in April next year.
