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Travel industry thrown by ditching of retirement at 65
Companies have been given too little time to prepare for the default retirement age being phased out from April next year, according to the Confederation of British Industry (CBI).
The Government has announced that from October 2011 it will be illegal for employers to force their staff to retire at 65 and employees will be able to continue to work for as long as they like.
But CBI deputy director-general John Cridland said this would create uncertainty among employers and staff who, without a default retirement age (DRA), will no longer know where they stand.
“Scrapping the DRA will leave a vacuum, and raise a large number of complex legal and employment questions, which the Government has not yet addressed," he said.
His comments appeared to be backed up by reaction from the travel industry this week, with tour operators and airlines saying they haven’t had chance to study the new laws.
"It isn’t clear yet how this is likely to affect our different working groups," said one airline. "It’s too early for us to say."
Cridland predicted the proposals, which could see employees working well into their 70s, may make it impossible for employers to offer benefits such as critical illness cover.
He added: “A default retirement age helps staff think about when it is right to retire, and also enables employers to plan more confidently for the future.
"In certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone.”
Companies will still be able to enforce compulsory retirement ages for physically demanding jobs, such as pilots, cabin crew and air traffic controllers.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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