News and Events

Retirement, All Change?

The Government has announced proposals to remove the default retirement age of 65 from 1st October 2011. This timetable is much quicker than previously anticipated and is likely to cause concern for many businesses in the region.

The proposals are to abolish compulsory retirement under the current default retirement age provisions from 1st October 2011.

Retirement dismissals will be permissible after that date but only if objectively justified and the Government gives examples of jobs such as police officers and air traffic controllers where this might take effect. Where employees have already been notified before 6th April 2011 of an intended retirement date before 1st October 2011, retirements at a normal retirement age of 65 or over will still be effective. Retirements intended to take effect after 1st October will not be lawful unless objectively justified.

The Government also intends to abolish the procedural provisions which safeguard employers from any claim for unfair dismissal or age discrimination where individuals are retired at a normal retirement age of 65 or over.

Maeve Vickery, Head of Employment at Battens Solicitors, says: "The average age of the workforce is increasing and employers need to look at their workforce planning. Health and safety, capability, performance and pension planning will all be in the spotlight. In the short term many employers will want to carry out an audit of employees approaching retirement age to consider whether they need to send them notification of retirement before 6th April 2011 to enforce retirement under the current provisions before 1st October 2011."

The Government has just published a consultation document on its proposals. Battens Solicitors will be organising a session for local employers to meet and share their views as part of the consultation to be fed back to the Government. If you would like to attend or have any queries on this, contact Victoria Knight on 01935 846131.

Created: 10 August 2010