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The Government has announced that it will remove the default retirement age of 65 introduced by the Employment Equality (Age) Regulations 2006. It proposes to begin phasing out the default retirement age (DRA) from April 2011. The Government's proposals are subject to a consultation which will run until 21 October 2010. August 2010 by Louise Fernandes-Owen at Field Fisher Waterhouse
The key proposals are as follows:
• Retirements using the DRA would cease completely on 1 October 2011 and employers would be unable to issue new notifications of retirement using the DRA on or after 6 April 2011.
• There would be a six month transitional period (from 6 April 2011 to 1 October 2011) so that retirements that were already in progress could continue through to completion, provided that a notification of retirement is issued by the employer prior to 6 April 2011, the date of retirement falls before 1 October 2011 and all requirements of the DRA procedure are met.
• Although the Government is proposing to remove the DRA, it would still be possible for employers to operate a compulsory retirement age, provided they can objectively justify it.
The consultation will run until 21 October 2010. The Government intends to publish a response in November 2010.
August 2010 by Louise Fernandes-Owen at Field Fisher Waterhouse |