Means of managing older workers out of the workforce

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Without a DRA the use of other (less acceptable) means of ‘managing’ older workers out of the workforce would have to rise. The DRA was felt to provide a dignified exit from the workforce;
‘older employees can exit the workforce with dignity instead of being managedout on performance or health grounds’. It is ‘the most appropriate way to settledisputes between employer and employee in relation to the timing of leavingthe workforce’ (individual business). One employer organisation said endingthe DRA would require an increase in alternative methods of dismissal and sobe ‘a barrier to older workers ending their working lives with dignity’; whilea business organisation warned of more uncertainty and ‘strained relations’.Concerns were expressed by several stakeholders about possible increases incostly performance-related dismissals, redundancy or ill-health retirements. Onebusiness saw performance dismissal as hard to justify, and frequently a long andunpleasant process; a suggested alternative would be to terminate employmenton performance grounds on payment of six months’ average pay. An employers’organisation said they would support ending the DRA if provisions were inplace to protect small businesses from possible increases in the number ofemployment tribunals.

Reference no: EM13524465

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