Default retirement age is completely abolished

The default retirement age will be abolished completely after a six-month transitional period, and employers will be prohibited from retiring employees in reliance on the default retirement age on or after 1 October 2011. 

Employers will be prohibited from issuing new notifications of retirement using the statutory retirement procedure from 6 April 2011 and notifications issued before this date must relate only to employees whose retirement dates fall before 1 October 2011. The default retirement age will be abolished completely after this six-month transitional period, and employers will be prohibited from retiring employees in reliance on the default retirement age on or after 1 October 2011. 

Employers may continue to prescribe a compulsory retirement age on or after 1 October 2011 only where they can justify it as a proportionate means of achieving a legitimate aim. Employers that do not prescribe a compulsory retirement age must rely on one of the designated fair reasons for dismissal set out in s.98 of the Employment Rights Act 1996, and follow a fair procedure in accordance with ordinary unfair dismissal rules, in order to achieve a fair dismissal. Section 98 cites reasons relating to capability, conduct, redundancy, illegality, and some other substantial reason capable of justifying dismissal, as potentially fair. Retirement will cease to be a potentially fair reason for dismissal. 

  • Default retirement age proposals: 10 things employers need to know The abolition of the default retirement age is going to have a huge impact on how employers operate their businesses. Get a headstart by understanding what the main issues are for employers. 
  • Outlook video: abolition of the default retirement age XpertHR's head of content Jo Stubbs and group editor David Shepherd discuss the Government's proposals on retirement, under which, from 6 April 2011, employers will no longer be able to rely on the default retirement age to maintain a compulsory retirement age for their workforce. 

Also

Retirement: liveflo Use this flowchart to retire an employee lawfully under the statutory retirement procedure. 

Retirement: model documents The XpertHR policies and documents section on retirement has more model documents, including:

Retirement: case law The XpertHR case reports service has reports on cases involving retirement, including: