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Abolition of the Default Retirement Age
| Author: Revera HR | Published: 23rd May 2011 10:28 |
Abolition of Default retirement age
The coalition Government has confirmed that it will proceed with its proposals to abolish the default retirement age of 65 and associated statutory retirement procedure.
From 6 April 2011, employers will be prohibited from issuing new notifications of retirement using the statutory retirement procedure and notifications issued before this date must relate only to employees whose retirement dates fall before 1 October 2011.
The default retirement age will be abolished completely after a transitional period of six months, and employers will be prohibited from retiring employees in reliance on the default retirement age on or after 1 October 2011.
Employers may continue to prescribe a compulsory retirement age after this date, but only where they can justify it as a proportionate means of achieving a legitimate aim.
Employers that do not prescribe a compulsory retirement age must rely on one of the designated fair reasons for dismissal set out in s.98 of the Employment Rights Act 1996 to achieve a fair dismissal. Retirement will be removed from s.98 and will cease to be a potentially fair reason for dismissal.
The Government will introduce an exception to the principle of equal treatment on the ground of age in relation to group-risk insured benefits, such as income protection or life assurance, provided by employers.
For further information about how this will affect you as an employee or an employer, please contact Revera HR Consulting on 01908 393702 or via enquiries@revera-consulting.co.uk. Please visit our website for further useful downloads: www.revera-consulting.co.uk.
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