Default retirement age of 65 to be phased out from April 2011

The Government has announced details of how it is proposing to remove the default retirement age of 65, currently permitted by the Employment Equality (Age) Regulations 2006.

It proposes to abolish the default retirement age and the statutory retirement procedures on October 1 2011. Transitional arrangements will begin on April 6 2011. Therefore employers giving notice of retirement after this date will no longer be able to rely on the default retirement age of 65.

The proposals are subject to a consultation, which will run until October 21 2010.

The key proposals are:

• Retirements under the default retirement age will cease completely on October 1 2011 and no new notices of intended retirement may be issued after April 6 2011
• Retirement dismissals will still be permissible after October 1 2011, but only if objectively justified
• Transitional arrangements will apply to retirements that have been notified before April 6 2011 to take effect before October 1 2011. Retirements notified before April 6 2011, but intended to take effect after October 1 2011, will not be valid (unless objectively justified)
• The statutory procedural requirements applicable to a retirement dismissal, will be abolished

As a result of this proposal to abolish the default retirement age of 65 and the existing statutory retirement procedure, employers need to keep their retirement policies under review.

While the law has not been changed as yet, it is necessary for employers to approach the issue of enforced retirement with renewed caution.

If you require advice in this area please contact the Employment team on 01254 258321