Pictured above: Lita Kirwan
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 Midland 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 6th
April 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.
She 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."
Lita 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.
Bradin Trubshaw & Kirwan LLP is a firm of solicitors
advising on a wide range of private client and commercial law.