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Default Retirement Age end April 2011

Default Retirement Age end April 2011
Friday, 14 January 2011 16:53

The Government has confirmed that the default retirement age (DRA) of 65 is to be phased out between 6 April and 1 October 2011.

Employers will no longer be able to let employees because they have reached the state retirement age and means that from 6 April 2011 employers cannot issue any notifications for compulsory retirement using the DRA procedure.

A phasing period applies between 6 April 2011 and 1 October. Here only employees who were notified before 6 April, with a retirement date before 1 October, can be compulsorily retired using the DRA.

From 1 October, employers will not be able to use the DRA to compulsorily retire employees.

Ed Davey, the employment relations minister, commented that firms could still dismiss workers if it was felt they were no longer capable of performing their duties.

"I think this change is really beneficial and should not be the problem some people suggest. As of now, you are still able under the Employment Rights Act 1996 to fairly dismiss someone if you go though the proper processes - and one of the reasons you can dismiss someone fairly includes capability."

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