CBI: SMEs need guidance on retirement rules

The CBI has called on the government to clarify its position on retirement rules before the default retirement age (DRA) is scrapped next April.

The employers’ group says businesses in the UK are at risk of tribunal claims unless the government produces some guidance or draft regulations.

The CBI refers to the removal of the DRA as one of the biggest changes to employment law in 2011.

John Cridland, CBI director general designate, says the ageing population and shortfall in pension savings means that people will have to continue to work for longer.

However, he acknowledges that in physically demanding jobs, working beyond the age of 65 may not always be possible.

Cridland says, ‘The government needs to act fast, and there should be no changes to the retirement framework until these issues are resolved.’

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