Retirement is the dismissal of employees on their reaching a certain age. It is the most obvious example of direct age discrimination. Nevertheless, it will remain lawful under the new Regulations.
The Regulations set a default retirement age at 65. Provided that you follow a fair procedure (see below) you will be able to dismiss an employee for retirement at this age or above. If you wish to operate a lower retirement age, you will need to justify it.
Please note that the following procedure only applies to retirement dismissals that are due to take effect on or after the 1st April 2007. There is a different procedure for retirement dismissals that are due to take place before that date.
The Regulations require en employer to follow the following procedure when intending to dismiss an employee by reason of retirement on or after 1st April 2007:-
1. Employer’s duty to inform
The employer must inform the employee in writing of the intended date of retirement and the right to request to continue working past that date.
This requirement must be fulfilled no more than one year and no less than six months before the intended retirement date. Even if a retirement date is stated in the contract, the employer is still under a duty to inform the employee of the intention.