Blaser Mills
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Default Retirement Age

Government confirms plans

The Government has decided to proceed with its plan to phase out the Default Retirement Age between 6th April and 1st October 2011.

The Default Retirement Age currently enables employers to make staff retire at 65 regardless of their circumstances.

From 1st October 2011, however, employers will not be able to rely on the default retirement age to justify a dismissal for a compulsory retirement.

An employer will only be able to use a compulsory retirement age to dismiss an employee where it can prove that it is necessary to meet legitimate employment policy, labour market or vocational training objectives, and that a compulsory retirement is an appropriate and necessary means of achieving these objectives.

Where such justification for compulsory retirement cannot be shown, older employees have full protection from unfair dismissal and a fair dismissal must rely on one of the reasons set out in section 98 of the Employment Rights Act 1996 i.e. capability, conduct, redundancy, illegality or some other substantial reason.

We are advising employers to appraise and consult with all employees who will be aged 65 or over on 30th September 2011 and, where the needs of the business are best served by compulsory retirement, to initiate the statutory retirement process before the 6th April 2011 deadline.

Please contact us should require any further advice at commercial@blasermills.co.uk.