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Tuesday 5 April 2011

Job creation 'could be affected by scrapping of DRA'

Companies, some of which might employ staff in sales jobs, fear the scrapping of the default retirement age (DRA) could have an impact on job creation.

Two-thirds of the firms surveyed by international law firm Freshfields Bruckhaus Deringer believe phasing out the DRA could affect companies' ability to hire new staff and might potentially harm the economic recovery.

In the short term, the companies polled said they fear job creation might be affected more through the abolition of the DRA than other legislative changes in the UK.

However, despite the concerns of many firms, more than half (54 per cent) said they supported the government's decision.

"There's no doubt that removing the default retirement age has led to widespread concern about the effects on the workforce and the implications for businesses and the economy as a whole," said Caroline Stroud, co-head of Freshfields' London employment practice.

John Cridland, director general at the Confederation of British Industry, recently said the Budget announcement could boost job creation among UK businesses.

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Posted by Nikki BarristerADNFCR-1617-ID-800488611-ADNFCR

Source: Salespeak News

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