On Wednesday the 6th of April new laws come into force abolishing the default retirement age, meaning employers will now be unable to issue new notifications of retirement. These new laws follow significant extension to paternity leave that came into force on the 3rd of April.
Commenting on the upcoming changes Charles Logan, Director at Hays says “There is no doubt that older workers have a significant value to add to organisations, especially with so many skills shortages across different sectors. However relying on an ageing workforce to pick up the slack for an ill trained younger workforce is not a longer term option. With youth unemployment at an all time high it is clear much more needs to be done to address the skills gap of the younger generation, enabling Britain to compete within the knowledge economies on a global scale.
“The country’s economic growth continues to be shaky. UK GDP fell by 0.5 % in the fourth quarter of 2010, introducing these new regulations creates an extra level of bureaucracy following the far reaching changes to paternity leave that came into force on the 3rd of April. Small businesses, on whose continued growth the UK is reliant, will struggle the most with this extra burden of red tape as they do not have the HR resources of larger companies.
“These legislative changes present a significant challenge to businesses at a time when they are struggling to create new jobs. The government must do more to provide clarity on how to implement changes. It must also take steps to consult with the UK business community on what legislation is needed and what can be supported right now.”
For more information please visit www.hays.co.uk.
Hays plc is the leading global specialist recruitment group. It is market leader in the UK and Australia, and one of the market leaders in Continental Europe. As at 31 December 2010, the Group employed 7,086 staff operating from 257 offices in 30 countries across 17 specialisms.
For the year ended 30 June 2010:
– the Group reported net fees of £557.7 million and operating profit before exceptional items of £80.5 million;the Group placed around 50,000 candidates into permanent jobs and around 180,000 people into temporary assignments;
– 26% of Group net fees were generated in Asia Pacific, 30% in Continental Europe & RoW and 44% in the United Kingdom & Ireland;
– the temporary placement business represented 58% of net fees and the permanent placement business represented 42% of net fees; and
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Mexico, Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, USA and the United Kingdom.