The law on age and retirement has changed. The Government has phased out the default retirement age (DRA) as of April 2011. Darren Hendleman, our employment law specialist and also Head of our Private Client Team said this is an important change that both employers and employees need to get to grips with quickly before workplace confusion causes disharmony.
From 6 April 2011, employers are no longer able to issue notifications of retirement using the DRA procedure. Where notifications have already been made prior to 6 April 2011 in accordance with these procedures, employers will be able to continue with the retirement process as long as the employee is aged at least 65 - or the employer's retirement age, if higher - before 1 October 2011.
In accordance with DRA procedures, those employees will be able to request to work on beyond their notified retirement date and employers will be able to agree an extension to their employment. If the employer wishes to give an extension that still ends with dismissal under the DRA, the extension must be for a fixed period of six months or less. This is the maximum period allowed without the need to issue a further notification of retirement.
Darren comments: Beyond certain transitional arrangements, employers are not longer able to rely on the DRA. This means that employers cannot compulsorily retire their employees, unless the retirement can be objectively justified in their particular circumstances.
If you feel you may need advice, eit er as an employer or employee, then Smith Sutcliffe can advise you on the latest law in this field. Call Darren on 01282426251 for further information.