There has been a clarification of the transitional arrangements to abolish the default retirement age (DRA) concerning the period of intended notice of retirement the employer must give an employee by the deadline for such notifications, which is 5 April 2011.
More information is available on the Acas website (http://bit.ly/gyViby
), but they have confirmed that subject to Parliamentary approval, the DRA is being phased out over a transitional period running until 30 September 2011. The last date on which an employee can be given notice of retirement under the DRA is 5 April 2011.
Under the DRA employers must give a minimum of six months notice of retirement but no more than 12 months notice. Retirements notified on or before 5 April 2011 can continue through to completion provided that:
• the DRA procedure, as set out in the previous Employment Equality (Age) Regulations 2006, is followed correctly (including the employee's right to request to stay on is given serious consideration by the employer)
• the person retiring reaches 65 or the normal retirement age (if this is higher) before 1 October 2011. Therefore an employee must be 65 by the 30 September if they are to be retired using the DRA.
Employers will not be able to issue notifications of retirement using the DRA after 5 April 2011.
They say that for employer-justified retirement ages, all notifications made prior to 6 April 2011 will continue to be valid, and there is no reason to curtail any notifications made under the former DRA arrangements prior to that date.