Croner's view on Tesco increasing pension age

blog-publish-date

15 May 2012

blog-read-duration

Tesco's recent decision to increase the age at which workers can claim their full pension entitlement has sparked concern from Croner customers, but what does this mean for British businesses? With proper consultation a company can increase the age at which an employee can take advantage of their full pension entitlement. Following the abolition of the Default Retirement Age of 65 on the 6th April 2011, retirement is no longer a fair reason for dismissal. In this case Tesco has sought to increase the age at which employee can retire and take advantage of the full pension entitlement, meaning employees will in effect have to work longer, not to impose a company default retirement age. "Since the abolition of the Default Retirement Age employees have the right to continue working for as long as they choose and they are fit and able to continue. This is a complex area and with the risks of discrimination claims high, employers would be wise to seek advice" says Sarah Cooper, Employment Consultant at Croner Richard Smith, HR expert at Croner speaking on Kaye Adams' Call Kaye morning show on BBC Radio Scotland said: "I think it's very common now for employers to be raising the pension ages for their employees mainly because pension funds simply don't have the wealth they once did a few years ago. "Having said that, it's not case of employers forcing people to retire because legal changes last year [of the abolition of the Default Retirement Age] meant that employers can't insist that people retire at 65 or 67 or 60. It is for the employee to decide when they retire but of course the employer has to decide at what age they will pay pensions and the two often go together."

Free to Download Employer Resources

  • Pay Awards & Forecast (September 2018)

    FREE DOWNLOAD

    Pay Awards & Forecast (September 2018...

    Read Croner Reward's expert settlement and forecast report for September 2018

    Read more
  • Sample Health & Safety Policy Statement

    FREE DOWNLOAD

    Sample Health & Safety Policy Stateme...

    Here we’ve included a free sample Health & Safety Policy Statement that UK business owners can refer to.

    Read more
  • Pay Awards & Forecast (June 2018)

    FREE DOWNLOAD

    Pay Awards & Forecast (June 2018)

    Read Croner Reward's expert Settlements and Forecasts report for June 2018

    Read more
  • How Much Does Employee Turnover Cost Your Business?

    BLOG

    How Much Does Employee Turnover Cost ...

    A recent Glassdoor survey revealed that almost 35% of hiring professionals expec...

    Read more
  • Staff Turnover: What Do You Need to Know?

    BLOG

    Staff Turnover: What Do You Need to K...

    Having a high worker turnover can have mean two things: A negative impact on you...

    Read more
  • What is Wrongful Dismissal?

    BLOG

    What is Wrongful Dismissal?

    If you breach an employee’s contract, you could be liable for wrongful dismissal...

    Read more
  • bemrose-school-derby

    CASE STUDY

    Bemrose School Derby

    “Having Croner-i saves us a lot of time and money, as we do not have to use cred

    Read more
  • wmtr

    CASE STUDY

    WMTR

    “I’d definitely recommend the Croner OnSite services and I have done already, I

    Read more
  • certikin

    CASE STUDY

    Certikin

    “Our Distribution Manager had a particularly technical query relating to respira

    Read more

Ready to focus on what you do best?

Get your free consultation and speak to an expert today.