CBI: Scrapping the DRA will leave a vacuum

Thursday, 29 July 2010 12:00 AM

John Cridland, deputy director-general of business organisation the CBI, says the proposals leave many questions unanswered:

"The decision to abandon the DRA leaves business with many unresolved problems, and the government's timetable to scrap it will give companies little time to prepare.

"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. This will create uncertainty among employers and staff, who do not know where they stand.

There will need to be more than a code of practice to address these practical issues; we will need changes in the law to deal more effectively with difficult employment situations.

"For employers, these proposals could make workforce planning and providing some employment benefits, such as critical illness cover, next to impossible.

"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."

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