Saturday 1 October 2011

New retirement regulations from 1st October

The last day employees can be compulsorily retired using the DRA has passed and, from 1 October, employers will not be able to use the DRA to compulsorily retire employees.

In limited circumstances, employers will still be able to operate an employer-justified retirement age but such compulsory retirement ages are, in practice, very difficult to justify.

After 1 October 2011 and in the absence of an employer-justified retirement age, employers will only be able to dismiss an older employee by following a fair dismissal procedure and relying on one of the fair reasons for dismissal set out in section 98 of the Employment Rights Act 1996 (such as conduct, capability or redundancy). Employers risk age discrimination and unfair dismissal claims if they do not follow a fair dismissal procedure.

APA

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