Default Retirement Age to be removed from April 2011
29th July 2010
Details have been announced by the Government that it intends removing the default retirement age of 65 with the phase out beginning from April 2011.
The principal proposals are as follows:-
1. Age retirements will stop completely on 1st October 2011 and no new notices of intended retirement may be issued after 6 April 2011.
2. Transitional arrangements will apply to retirements that have been notified before 6 April 2011 to take effect before 1 October 2011.
3. Retirement dismissals will still be permissible after 1 October 2011 but they will have to be objectively justified.
We will be closely monitoring developments regarding these proposals but if you have any particular comments that you would like to make do take part in the consultation. Details can be found at www.bis.gov.uk/retirement-age.
In the event, which appears likely, that the proposals will become law objective justification of retirement will become critical.
In a recent case relating to Partners in a law firm it was suggested that to allow people to retire with dignity as opposed to for example, as a result of a Capability Procedure might be a justification for having a mandatory retirement age. However, if you do introduce a Policy it will be important that you can show at the time of the termination of a particular employee's employment, that the Policy was justified.
We will in due course be providing guidance with regard to retirement and Policies generally.
For more information contact Nick Watson at nw@stoneking.co.uk
