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CBI urges government to delay scrapping default retirement age

CBI's director-general designate John Cridland said that abolishing the DRA would bring about a lega

British businesses have asked the government to postpone the planned rise in the employees' age of retirement to be implemented from April 2011 by a year.

The Confederation of British industry (CBI) said that companies faced "huge uncertainty" and were at risk of being charged with unfair dismissal claims, without first establishing legal clarity over the reforms to the default retirement age (DRA).

The law on unfair dismissal would have to be made simpler before putting in place the new limit, added the CBI.

CBI's director-general designate John Cridland said that while it was understood that people would want to work for longer, "in certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone."

According to Cridland, abolishing the DRA would bring about a legal vacuum.

"In the majority of cases this will not be an issue, but in a minority it will be a serious problem for all concerned. The government needs to act fast, and there should be no changes to the retirement framework until these issues are resolved," he added.