Outlook video: final possible retirements under the default retirement age

XpertHR's head of content Jo Stubbs and senior employment law editor Clio Springer discuss which retirements can still continue through to completion using the default retirement age and statutory retirement procedure, which will be abolished from 6 April 2011. 

 

This video requires the Adobe Flash Player plug-in. 

 

Download the audio track for this video (MP3 format, 6.9MB). 

 

More resources on this topic from XpertHR

The questions in full:

What is the last date employers can notify an employee of retirement using the default retirement age?

The final date that employers will be able to give between six and 12 months’ notice of retirement using the default retirement age and statutory procedure is 5 April 2011. They will have to be able to justify objectively any compulsory retirement notified from 6 April 2011 onwards. 

Can employers issue a retirement notice using the statutory procedure for any older employee, so long as they do so by 5 April 2011?

No. The employee must already have reached 65 (or the employer’s normal retirement age if this is higher), or be going to reach this age by 30 September 2011. Employers will not be able to retire anyone under the statutory procedure whose 65th birthday is on or after 1 October 2011. 

What do employers have to do to comply with the statutory procedure for any retirements that they notify by 5 April?

Inform the employee in writing of the date when his or her employment will terminate by reason of retirement and of the right to make a request to carry on working beyond the intended retirement date. The intended retirement date can be between six and 12 months from when they give the notification. 

So when is the last intended date of retirement possible?

According to the Department for Business, Innovation and Skills, 5 April 2012 where the employer gives the maximum 12 months’ notice on 5 April 2011. 

Suppose the employee requests to continue working beyond his or her retirement date?

Unless the employer agrees to the request without this being necessary, it must hold a meeting to discuss the request with the employee. The employee has the right to be accompanied at the meeting by a colleague of his or her choice. 

The employer must then let the employee know the outcome in writing. If it refuses the request, or agrees to extend the employment for a shorter period than requested by the employee, it must also inform the employee that he or she has the right to appeal. If the employee appeals, the employer needs to hold a further meeting before making a final decision. 

Are there rules on when the employee must make a request to continue working?

Yes, an employee who wants to request to continue working must notify the employer more than three, but not more than six, months before the proposed retirement date. As we said, the last date on which an employee can be given notice of retirement under the statutory procedure is 5 April 2011, and this could be up to a year’s notice, making a retirement date of 5 April 2012. Therefore, the last date on which an employee in these circumstances can make a statutory request to continue working is 4 January 2012 (ie the final date more than three months before the proposed retirement date). 

If an employer agrees to an extension of employment will it still be able to retire the employee safely?

That depends. If the employer agrees to an extension of six months or less, the retirement can simply go ahead under the statutory retirement procedure at the end of the extended period. 

However, if the employer agrees to an indefinite extension, or to an extended period of more than six months, a new notification of retirement and repetition of the retirement procedure would be necessary if it subsequently wanted to retire the employee. But, of course, it will not be possible to give notification of retirement under the statutory procedure after 5 April 2011. So if the employer agrees to an extension of more than six months it will not then be possible for it to retire the employee under the statutory retirement procedure. 

So where an extension is agreed, what is the last possible date for a retirement under the statutory procedure?

According to the Department for Business, Innovation and Skills, the last date for a retirement to take place under the statutory procedure is 5 October 2012. This would be where the employer gave 12 months’ notice on 5 April 2011 of a retirement date of 5 April 2012, then agreed to an extension of six months. 

 

Beyond the default retirement age: Model retirement policies and documents

With the default retirement age and statutory retirement procedure set to be repealed from 6 April 2011, employers that have, to date, adopted a compulsory retirement age will be required to amend their policies and procedures. XpertHR has produced various model documents relating to retirement beyond the abolition of the default retirement age, including a new retirement policy, and a letter informing employees that the organisation is removing its compulsory retirement age. 

 

FAQs on retirement

See the XpertHR FAQs section for the answers to further questions on the repeal of the default retirement age and beyond, including: