Discuss retirement plans with an employee

Key points

  • Employers cannot require employees to retire at a certain age, unless this can be objectively justified. However, employees can still choose to retire from employment by giving notice under their contract.
  • When discussing retirement plans with an employee, to avoid the risk of a claim of age discrimination, the employer should be cautious not to give the impression that the employee is expected to retire at a particular time.
  • If an employee indicates that he or she wishes to retire, it will be appropriate for the employer to discuss relevant issues, such as the possibility of a phased retirement and the handover to a successor.

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