Following its consultation on the issue of default retirement age (“DRA”) the Government have announced that, following a transitional period starting on 6 April 2011, the DRA is to be abolished from 1 October 2011. New regulations to implement the change are expected to be published shortly making it unlawful to compel an employee to retire when they reach the age of 65.
As the phasing out period is due to start in April, employers only have a short time in which to take advantage of the DRA while it is still available. Employers should carefully assess the implications that this change will have on the make up of their workforce and, where necessary, initiate the retirement process for those employees who will be 65 before October 2011.
Should you require guidance on the default retirement age or as to the correct procedure to follow when retiring an employee please contact the Employment Team on 01332 226149.