Default Retirement Age
The Chancellor has confirmed that “the Government will consult shortly on how it will quickly phase out the default retirement age from April 2011.” It would appear, then, that a priority of the new coalition Government is to phase out the default retirement age of 65.
If you have any employees in respect of whom you anticipate commencing the statutory retirement process prior to April 2011, you may wish to take advice in relation to your position.
Review of Employment Legislation
The Government states within the budget report that the volume and complexity of regulation can damage UK competitiveness. They have announced that they will reduce regulatory costs by introducing a ‘one in, one out’ system for new regulations. The Government have indicated that the Department for Business, Innovation and Skills will publish more details of this in July 2010.
The Government did, however, announce a number of plans for reducing burdens within the budget. Their plans include requiring each relevant department to start immediately a review of the employment laws for which they are responsible, to ensure maximum flexibility, protect fairness and promote competitiveness.
It would appear then, that we should expect changes affecting employment legislation in the near future.
Equality Act 2010
It was thought that one review of employment legislation may include a review of the provisions contained within the Equality Act 2010. The Equality Bill received Royal Assent on 8 April 2010. The Labour Government had stated that its intention was that the majority of the Act's provisions would come into force in October 2010.
Although not specifically mentioned within the budget itself, there was speculation in relation to whether all of the provisions of the Equality Act would now be brought into force when the Government Equalities Office removed the implementation dates for the Act from its website earlier this month.
The Government Equalities Office have now released a statement indicating that provisions in the Equality Act will come into force at different times to allow time for the people and organisations affected by the new laws to prepare for them. They also indicate that the Government is currently considering how the different provisions will be commenced, in order that the Act is implemented in an effective and proportionate way.
The Government Equalities Office states that it is continuing to work on the basis of the previously announced timetable for implementation of the Act, which envisaged that the core provisions would come into force in October 2010.
Whether or not this is the new Government’s intention remains to be seen.
Just Employment Law will, of course, keep you up-to-date with further developments in relation to the changes to employment law being effected by the new Government.