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Specialist employment solicitors Trethowans look at the new proposals to change the retirement age laws. The Government has announced that the default retirement age could be scrapped as early as next year. This means that next year employers will not be able to issue retirement notices forcing staff to step down at the age of 65. Carly Newport and Rhiannon Daniel from the Employment Team at Trethowans Solicitors run over the important developments, and what these could potentially mean for employers. Current situation At present employers can force employees to retire at the age of 65 without the fear of an unfair dismissal claim provided that a simple procedure is followed. This is that at least 6 months notice of retirement is given and that the employer meets with the employee (if the employee wants to meet) to discuss a request to be allowed to stay on. No reason needs to be given if the outcome is that the employer still wants the employee to retire. What does the future hold? On 29 July 2010, the government launched the start of a consultation process about removing the fixed retirement age. The likelihood is that forced retirements will cease on 1 October 2011 and no new notices of intended retirement may be issued after 6 April 2011. Consequently, after the 1 October 2011 employees over the age of 65 will be treated the same as their colleagues. Employees will be able to continue working for as long as they wish to and cannot be retired or dismissed because they are too old. To terminate an employee aged 65 or over the employer would need a fair reason for the termination for example misconduct, lack of capability or redundancy. It will be age discrimination to force someone to retire just because they reach 65. What will these changes mean for employers? Employers will need to revise their policies and practices, especially in relation to capability procedures and retirement. The changes are likely to make workplace planning more difficult and therefore employers will have to re address the way that they approach planning issues. In the consultation period the Government will consider the following points: How will employers be able to offer benefits such as healthcare insurance and critical illness cover to those over 65? If they do not offer these benefits then will they be discriminating against older workers? Will there be any exceptions? It has already been suggested by the Government that there will need to be some exceptions for physically demanding jobs such as police officers and doctors, although it is expected that any dismissals in these roles will still have to be objectively justified. Will employees be able to work and still claim their pension? For more information visit employment solicitors http://www.trethowans.com/business_services/employment_hr.asp Ref: TEL-HS-13810
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