A default retirement age is to be phased out by the Government, removing the current age of 65. Workers will now win the right to stay in their jobs beyond this age, preventing employer's safety from age discrimination and unfair dismissal charges, if they choose to dismiss an employee as a result of their age.
If wishing to retire an employee before the default age, employers will be forced to justify their actions. Prior warning of at least 6 months and no more than a year must be given to the employee of their intended date for retirement. During this period the colleague is entitled to appeal against the decision, though this needs to be registered at least 3 months before the date given to them. The employee also has the option to appeal after a compulsory conference with their employer, which will need to be detailed in writing.
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.
Plans to remove entirely the set retirement age were put into action by the government this year. They propose to scrap the unfair law by October 2011, and have created a consultation process to discuss the details. The new plans will prevent further forced retirement cases from progressing after 6 April 2011.
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.
More Information:
If you need advice on making the next steps with your will, call local
Merseyside solicitors, Hattons Law, for advice.
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