Currently employees can be retired at 65 regardless of their circumstances but this is set to change with the Government's proposal to phase out the default retirement age from April 2011. The proposals are subject to consultation, which will close on 21 October 2010.
The key points are that:
- no retirements under the default retirement age rules will be permitted after 1 October 2011 and no new notices of intended retirement may be issued after 6 April 2011;
- retirement dismissals will however be lawful after 1 October 2011, but only if objectively justified;
- retirements notified before 6 April 2011, but intended to take effect after 1 October2011, will not be valid, unless objectively justified;
- the procedural requirements applicable to retirement dismissals, set out in the Employment Equality (Age) Regulations 2006, will be abolished.
Comment: the Government's aim is to help and encourage people to work for longer but between now and 1 October 2011 employers may look to take advantage of the current rules. After the change takes effect the main question will be whether retirement dismissals can be objectively justified. The Government's press release about the proposals gives 2 examples of when it may be - police officers and air traffic controllers. Employers however will look for a much broader range of examples. It ishopedthe Government will issue guidance on when retirements might be objectively justified, but we suspectthat will be left to employers and the courts to work out - a process which could prove costly for some employers.
For more specific advice please contact a member of the team:
Disclaimer
The information contained with this e-bulletin is necessarily of a general nature. Specific advice should always be sought for specific situations.
