The Default Retirement Age (DRA) no longer applies in every case
Since Wednesday 6th April 2011 employers have no longer been able to compulsorily retire employees using the default retirement age (DRA), unless the default age can be objectively justified.
The Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011 brought this change into effect.
For employees currently under notice of retirement using the DRA, these will continue through to completion. Employers who have staff nearing retirement age should ensure that they know about the changes that have come into effect.
These changes have had far reaching implications for the way many businesses work and employers who have failed to make the necessary changes to approaches to employee retirement may face claims of unfair dismissal and discrimination.
Key things to remember:
- Workers need only retire when they are ready to, enforced retirement will only be possible if it is objectively justified
- Employers must avoid discriminating against employees on the grounds of age
- These changes do not affect an employee’s state pension age and entitlements, which may well be separate from the age at which they retire.
So, if you haven't already considered the implications you should be urgently reviewing your contracts of employment and terms and conditions. Otherwise, you could be heading for trouble in the future!
07 April 2011