A survey by national firm Irwin Mitchell has revealed the extent to which businesses believe government plans to scrap the default retirement age (DRA) will cause a hike in employment claims against them.

Some 57% of businesses said they thought the removal of the DRA would lead to an increase in employment tribunal claims.

The study, seen exclusively by the Gazette, questioned managers at 141 companies across the UK. Almost half said new DRA legislation, which comes into force on 6 April, has been introduced too quickly, while six out of ten said the government has not clearly explained the changes.

Under the new legislation, statutory retirement procedures will not apply, and employers will need to objectively justify the retirement of employees once they reach the age of 65, or rely on another fair reason for dismissal.

Irwin Mitchell employment partner John Hayes said: ‘Whilst the removal of the statutory retirement procedures will relieve an administrative burden on employers, a failure to act reasonably and fairly could leave them open to claims on the grounds of both age discrimination and unfair dismissal.

‘Employers are right to be concerned and should tread carefully.’

The survey also revealed concerns around other employment ‘red tape’, with 40% of respondents saying that changes in the Equality Act and the rules governing paternity leave will have a negative impact on their company.

Some 76% said they would support plans to charge a fee for employment tribunals, so as to discourage frivolous and vexatious claims.

Irwin Mitchell national employment head Tom Flanagan said: ‘It will be interesting to see what the impact of some of these ideas will be, but for the time being it seems employers are unconvinced and still very concerned about the impact of more red tape.’