CBI seeks to limit litigation from age discrimination rules

New age discrimination laws must not expose employers to the risk of litigation when retiring staff, the CBI has warned.

Under the Government's proposals employees will be able to ask to work beyond the new default retirement age of 65. But business depends on being able to plan for the future and staffing levels are a core element so employers want to have the final decision on retirement, subject to correct procedures being followed.

The draft rules, currently proposed by the Government, will leave employers exposed to litigation and potentially costly employment tribunals, the CBI says.

The regulations amend the Employment Rights Act 1996 and allow workers to challenge 'planned retirement' as unfair dismissal regardless of whether or not the employer followed the correct procedures.

And in such circumstances the practice of tribunals is to leave employers to prove their innocence or risk costly rulings against them.

The CBI agrees that when an employee requests the postponement of planned retirement there should be a full discussion between them and the employer - but wants the regulations to ensure the final decision on retirement is left to the company without risk when the proper procedures have been followed.

Unfair dismissal cases should not be allowed to arise from a properly 'planned retirement.'
The draft proposals are part of new Employment Equality (Age) Regulations which must be implemented by the end of 2006 to meet new European Union requirements on age discrimination. Consultation on the regulations, which are broadly welcomed by the CBI, ends today (Monday).

John Cridland, Deputy Director General of the CBI, said: "These regulations are a major landmark - protecting employees against unjustified age discrimination is the right thing to do. But Government must ensure the regulations are also workable and business-friendly. These draft regulations don't give employers and employees the clarity they need.
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