Transitional provisions for abolition of default retirement age

From 6 April 2011, employers will be prohibited from issuing new notifications of retirement using the statutory retirement procedure 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: