Current legislation places the retirement age at 65, as a default. Age discrimination or unfair dismissal claims will therefore stand in no stead as employers are legally allowed to retire their employees once they get to this age, providing the statuary retirement procedure has been properly followed.
Before dismissing employees, bosses will need to show this is objectively defensible, and follow a series of rules. Between 6 and 12 months notice must be given to the worker of the planned retirement date. Any appeals by the employee of unfair treatment or a wish to remain in the post must be lodged between 3 and 6 months of the proposed date, to allow their employer to arrange meetings and discussions to resolve the issue. The employee should then be notified in writing of the ultimate outcome.
If the above procedure is followed correctly then the employee will not have the right to argue unfair dismissal, though all requests are considered separately. A great importance is then placed on the date of notification of the retirement date, meaning that if the employer does not grant suitable notice, 2 months’ pay could be awarded to the wronged employee.
The Government announced its plans to get rid of the default retirement age for the whole of the UK in July 2010. Shortly after they launched a consultation process to manage the project, which aims to ban forced retirement notices which are submitted after 6 April 2011, six months in anticipation of the October scrappage.
However, this has sent employers into a panic, who are now beginning to rush through forced retirements before the scrappage date. Employers will soon be expected by the law to recognise employees who turn 65 before the beginning of October 2011. After this date it is the company’s decision whether to reissue a new retirement age for its employees. They will also need to consider and seek advice on the extra benefit costs which will be incurred by older staff members.
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