Employment briefing from NALC

GOVERNMENT PROPOSALS TO END THE DEFAULT RETIREMENT AGE

On 29 July 2010 the Government issued a consultation on how it proposes to phase out the current default retirement age (“DRA”) of 65 from April 2011. 

The key proposals, which are subject to a consultation that will run until 21 October 2010 are:

• From 1 October 2011 employers will not be able to rely on the DRA to justify a dismissal for a compulsory retirement.  The changes will remove the procedural requirements applicable to a retirement dismissal (e.g. the employer's duty to provide notice of retirement and the employee's right to request to work beyond normal retirement age).   No new notices of intended retirement may be issued after 6 April 2011.

• Retirement dismissals will still be permitted after 1 October 2011, but only if a proportionate means of achieving a legitimate aim (or objectively justified).

• Transitional arrangements will apply to retirements that have been notified before 6 April 2011 to take effect before 1 October 2011.  Retirements notified before 6 April 2011, but intended to take effect after 1 October, will not be valid (unless objectively justified)

The current retirement provisions as set out in the Employment Equality (Age) Regulations 2006 and summarised in Employment Briefing E06-06 will remain in force until April 2011.