Government Announces Abolition of the Default Retirement Age

As widely predicted, the Government announced plans last week to abolish the default retirement age of 65 with effect from the 1^st October 2011. 

Phil Kerridge, head of Employment Law at the Firm, believes that it is vital that businesses understand the impact that the abolition of the DRA will have on them, both in terms of any employees who are approaching (or have passed) the age of 65 and beyond.

“Under current legislation, retirement is one of the grounds of fair dismissal, provided that employers follow a procedure that basically requires them (amongst other things) to give any employee at least 6 months notice of their intention to retire them.

In the short term, if an employer is considering retiring an employee who is due to reach (or who has already reached) the age of 65, the current rules will continue to apply provided that retirement is due to take place by no later than 30^th September 2011.  This will require notice to have been given by no later than 30^th March 2011.

Longer term, employers will find it much more difficult to fall back on the retirement provisions as an alternative to addressing performance issues with their elder staff, which I believe is what often happens at present.  The abolition of the DRA will, for most employers, place far greater emphasis on the need to have regular appraisals/workplace discussions with their workforce.  These will have to be very carefully handled so as to avoid any suggestion that the employer is acting in a discriminatory fashion.”

Phil Kerridge can be contacted for further advice on this subject or any other employment matter on 01603 675603 or at pnk@rogers-norton.co.uk