The Default Retirement Age is being pensioned off

After much speculation we now know – the default retirement age will be being pensioned off with effect from October 2011.

But the change will start to have effect from next April, because from then onwards employers will have to stop issuing notifications of retirement using the default retirement age procedure.

The Government is currently consulting about the change. Particularly thorny issues are likely to be the consequences for insured benefits and employee share plans.

Make no mistake; this will have a big impact in the workplace. Unfortunately, if there is a mismatch between what an individual can do and what the company reasonably needs them to do, the only route open to the employer will be to use its capability procedure to effect a fair dismissal. Hardly the basis for happiness and contentment in the workplace.

The reality is that many employers will now have to think much more about how they manage performance in the workplace. It can’t be one set of rules for one age group and another for others; any lack of consistency will inevitably lead to more tribunal claims.

We’ll report more on this important change when the Government responds to the consultation programme. The consultation can be found at: www.bis.gov.uk/retirement-age

The Bribery Act 2010 will:

• Introduce a corporate offence of failure to prevent bribery by persons working on behalf of a business. A business can avoid conviction if it can show that it has adequate procedures in place to prevent bribery.
• Make it a criminal offence to give, promise or offer a bribe and to request, agree to receive or accept a bribe either at home or abroad. The measures cover bribery of a foreign public official.
• Increase the maximum penalty for bribery from seven to ten years imprisonment, with an unlimited fine.

In September 2010 the Government will launch a short consultation exercise on the guidance about procedures which commercial organisations can put in place to prevent bribery on their behalf.

This will be published early in the New Year to allow businesses an adequate familiarisation period before the Act commences.

The consultation will be followed by a series of awareness-raising events to ensure everyone is aware of the changes the Bribery Act makes to the current law.

We will keep you up to date with any developments.