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Employment Law - Default Retirement Age Removed

With less than 2 weeks to go before the law comes into effect it is worth reminding ourselves
that the second major wave of ‘Age’ legislation will soon be with us. A further step, some
have argued, against ageism. If this email is not a reminder but, in fact, the first time we are
being made aware of these important statutory measures, it is for our benefit to familiarise
ourselves with our obligations and, of course, rights under the new law.

As the law currently stands, an employer can force an employee to retire at the default
retirement age of 65 without necessarily having to pay that employee compensation. This all
changes very soon. As of 5 April 2011 employers will not be entitled to serve retirement
notices. What of, therefore, up to midnight on 4 April 2011? Such notices can be issued
provided that: one, in the event that an employee requests not to be retired, statutory
procedures are followed; and two, the employee reaches 65 or the normal retirement age (if
higher) before 1 October 2011.

Of course, this law will inevitably have, arguably, as major an impact on employers (and
employees) since the enforcement of the Employment Equality (Age) Regulation 2006 on 1
October 2006. The key things to remember, says ACAS, are: “Workers will retire when they
are ready to, enforced retirement will only be possible if it is objectively justified; You must
avoid discriminating against all workers on the grounds of age; This legislation will be
applicable to all employers and all company sizes and sectors; 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.” Take heed!

Ryan Clement is a practising barrister at Conference Chambers: www.conferencechambers.com. He
specialises primarily in general commercial, construction and employment law. He accepts instructions
from both solicitors and the general public through the Bar Public Access Scheme. He provides training to
companies on all aspects of employment and some commercial law. To instruct Ryan or obtain further
information on his full areas of work please contact Conference Chambers.

Conference Chambers