Retirement Age Eliminated, but what does this mean for Commercial Properties?

Posted on 7 October, 2011 by MOVEHUT

Compulsory retirement at the age of 65 has now been abolished in the UK. People now have the right to continue working, once they reach 65, if they wish to do so. But what will this mean for businesses of commercial properties around the UK? Movehut investigates.

What used to happen when people reached 65?

Before the compulsory retirement age was abolished, many firms would issue a six month notification, under the retirement age procedure which forced the individual to retire from their current position, whether they wanted to or not.

This can be quite devastating for someone who is enjoying their job and is fully capable carrying out their duties at work. Someone in that situation was Andrew Webster, an English teacher from Richmond. He stated, ”I was devastated. I had found a job I loved, I felt I was in my prime. I got on well with the students and they had good results. I wanted to go on doing it for as long as possible and I needed the money as well so it was a terrible blow when it happened.”

Mr Webster was pleased about the changed in the law, expressing ”I know it is too late for me but I am pleased that other people will not also be forced to retire before they are ready.”

What has changed?

The Employment Equality Regulations 2011 started phasing out the compulsory retirement age in April of this year. This meant that firms could no longer issue the six month notification without justifying their decision to force an individual to retire. Firms will no longer be able to force people out of their jobs for age reasons only. If a company cannot justify issuing a six month notification for retirement, they could be breaching age discrimination.

Young Vs Old

Many people feel that when an individual reaches the age of 65, they are no longer able to do their job as well as someone much younger. For instance, a shop worker in a commercial property could be on their feet for up to eight hours a day, lifting stock, assisting customers and working the till etc. Would this sort of job better suit someone say in their late teens/early 20’s, who have the highest levels of unemployment in the UK, or would it be discriminatory to even think of such a thing?

Christopher Brooks, Head of Policy for Work and Learning at Age UK stated, “Many employers simply see the stereotypes of an older worker, particularly in the recruitment phase and statistics show older workers find it harder to find another job than any other age group.”

”Discrimination in the recruitment process is against the law, but it still happens in practice quite a lot. It is however quite hard to prove but we do get lots of feedback from people who have been in interviews and been told they are over qualified or just too old to do the job, which quite often amounts to age discrimination.”

Businesses in commercial properties should work with their older employees to adapt their job for the benefit of the business. For example, a mechanic may not be able to keep getting up and down under cars all day long, but they could become a trainer for young apprentices as Liz Fields Chief Executive for the Financial Skills Partnership expressed, “The skills and life experience that an older person can bring to a business actually helps that business become much more competitive.”

People should, and now do have the right to choose whether to retire or continue working. For some people, living on a pension wage would not be financially viable, so they must continue to work for as long as they see fit. But only time will tell if businesses in commercial properties are getting around age discrimination by issuing compulsory retirement notices people with justified reasons.

 




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