News from the GICC about Bill 211

In just one week mandatory retirement in Ontario will come to an end with the implementation of Bill 211, leaving businesses to wonder how it will affect their operations.

The Ending Mandatory Retirement Statute Law Amendment Act, 2005 changes the definition of "age" in the Human Rights Code. The Code formerly protected individuals between ages 18 and 65. Essentially Bill 211 has removed the upper age limit, now making it difficult for employers to use any age over 18 years as a reason for an employment-related decision.

It remains to be seen how many workers will choose to exercise their right to work past the age of 65 after December 12th when the Bill comes into effect.

But while many employers may take a wait and see attitude, they should be prepared for possible changes in their workplace.

Some employers see the end of mandatory retirement as a solution for their labour shortage. A survey conducted in 2004 by the Ontario Chamber indicated that two-thirds of respondents felt the end of mandatory retirement would help address the province's skills shortage.

However while older workers may offer some relief, accommodating those beyond the age of 65 will require changes in the workplace. For instance, flexibility in job duties or working hours may be needed to convince them to stay beyond 65. It's also anticipated that employers may need to consider accommodations for disabilities and other possible effects of aging.

Business owners should also be prepared to make changes in policies and procedures as a result of Bill 211.

First of all, employers have the ability to establish a "normal retirement age" and in fact where a pension plan exists, this is required. Although an employer will not be able to force a worker to leave at this age they will be able to use it as a reference point for discussions with employees about their future plans. This will facilitate succession planning.

Bill 211 is not intended to limit employers' abilities to make age-based distinctions in employee benefits. However employers are encouraged to discuss the implications with their insurance providers and examine all related policies.

More information about Bill 211 can be found on the Ontario government website.