Proposal to scrap the default retirement age
The Government is proposing to phase out the default retirement age of 65 from April 2011. They are seeking comments as part of the consultation process but this means that there are likely to be transitional arrangements put in place for retirements that have been notified by employers before April 2011 and where the date of retirement falls before 1 October 2011.
The key proposals are that:
• employers will not be able to force employees to retire after 1 October 2011 which means no new notices of intended retirement can be issued after 6 April 2011;
• employers will only be able to retire employees after 1 October 2011 if they can objectively justify this decision (examples could include air traffic controllers and police officers);
• employers will still be able to retire employees who were notified about the intended date of their retirement before 6 April 2011 and where the date of retirement is before 1 October 2011. If the date of retirement is after 1 October 2011, it will not be valid unless the employer can objectively justify the decision; and
• the procedure, including the right for employees to request to continue working after age 65, that employers are currently required to complete before retiring employees, will also be scrapped.
Further information on this development will be provided when the consultation period finishes in October 2010 and the Government decides what arrangements it will adopt.
Posted on 19 Nov 2016