Thu, 4 Nov 2010

Default retirement age on scrap heap

The Default Retirement Age (DRA) is to be scrapped, meaning employers cannot compulsorily retire employees at age 65. The change comes into force from 6 April, although the DRA can still be applied to people notified prior to this date, whose retirement commences before 1 October. After 1 October, employers concerned about ageing staff can still operate a compulsory retirement age if it can be justified.

‘It is high time we ended this outdated form of age discrimination,’ said employment relations minister Edward Davey.

Low paid pregnant staff could be hit by EU ruling

Maternity leave could rise to 20 weeks on full pay following an unexpected result in the EU yesterday. MEPs voted on the controversial proposal which business leaders claim may ‘damage the prospects of young women’.

The Institute of Directors urged the Government to block the proposal which its spokesman said amounted to ‘a tax on employing young women’.

Yet the proposal was criticised from some women’s rights campaigners also.

Labour MEP Mary Honeyball said, in an article for The Guardian, that for a woman on the minimum wage of £5.93, working for 40 hours a week, weekly pay would be £237.20 per week.

If she took the full entitlement for maternity leave under current arrangements, she would receive £213.48 per week for the first six weeks (90% of full pay – £1,280.88) and £124.88 per week for the next 33 weeks (standard rate, regardless of earnings), which amounts to £4,121.04. This is a total of £5,401.92. She would also have the option of 13 further weeks’ maternity leave (unpaid). Under the proposals, which seek to provide 20 weeks maternity leave on full pay, a woman with the same working conditions would receive £237.20 per week for the first 20 weeks, a total of £4,744. This would be around £650 less than under the current system.

She said there were parts of the report which had good sentiment such as: ‘additional provision for parents of children with disabilities, as well as premature and multiple births, and strengthening women’s legal protection against dismissal and working time arrangements on return to work’.

A spokesman for the Department for Business expressed its disappointment at the vote. He told The Daily Mail: ‘This is not the end of the process and the UK will be working hard to oppose the imposition of a requirement for fully-paid maternity leave.

‘The UK will not accept a directive which imposes significant costs on member states.’ MEPs backed the measures by 390 votes to 192.