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Abolition of the Statutory Default Retirement Age of 65 from October 2011 - 01/10/2010
At present employers can retire employees, providing they have followed the appropriate procedure at the age of 65. However the statutory default retirement age of 65 will be abolished in October 2011. Therefore employers need to start thinking now about their workforce so they are prepared for the changes which will come into effect in October 2011. Employers should consider the age profile of their workforce or the proportion of employees nearing retirement and consider should there be a separate procedure for dealing with cases of retirement even after the statutory retirement procedure is abolished. Employers may also have to consider amending their contract of employment and handbooks if they refer to a normal retirement age as this obviously will no longer apply in October 2011. The statutory retirement procedures which require employers to give a minimum of 6 months notice of retirement will also be phased out. Transitional arrangements will be in place between 6th April 2011 and 1st October 2011.
Where an employer gives notice of retirement under the default retirement age procedure it will need to give that 6 months notice to expire before 1st October 2011. If the notice of retirement is given after 6th April 2011 then clearly there will be insufficient notice to give the minimum 6 months notice before the new rules come into effect on 1st October 2011.
Therefore with effect from 1st October 2011 there will no longer be a default retirement age and employees will remain in position unless they choose to retire i.e. resign or their employment is ended for the usual reasons of conduct, capability or redundancy.