Default Retirement Age To Be Phased Out Starting April 20113 August 2010
On Thursday 29 July 2010, the Government revealed its proposed plans to phase out the default retirement age. The default retirement age stipulated by the Employment Equality (Age) Regulations 2006 is currently 65. The proposed phasing out would begin in April 2011. Consultations over the suggestions will run until 21 October 2010, when a final decision will be reached.
The Government’s fundamental proposals are:
- From 6 April 2011, no new notices of intended retirement can be issued and from 1 October 2011, there will be no retirements under the default retirement age.
- After 1 October, retirement dismissals will still be allowed, although only if they are objectively justified.
- Retirements notified before 6 April 2011 to take effect before 1 October 2011 will have transitional arrangements applied. However (without objective justification), those notified before 6 April 2011 to take effect after 1 October 2011 will not be valid.
The relevant procedural requirements currently set out in Schedule 6 to the Employment Equality (Age) Regulations 2006, in relation to a retirement dismissal will be abolished.