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Compulsory retirement age to be axed from October 2011

29th July 2010

Under the plans employers will no longer be allowed to dismiss an employee simply because they had reached the age of 65 as permitted by the Employment Equality (Age) Regulations 2006.

The proposal, which is subject to a consultation running until 21 October 2010, is to begin to phase out the DRA from April 2011.

The key proposals are:

  • Retirements under the DRA will cease completely on 1 October 2011. Given that an employer must give six months' notice before forcing someone to retire on the grounds of age, no new notices of intended retirement may be issued after 6 April 2011.
  • Retirement dismissals will still be permissible after 1 October 2011 but only if “objectively justified” in the case of air traffic controllers and police officers, for example.
  • Transitional arrangements will apply to retirements that have been notified before 6 April 2011 to take effect before 1 October 2011. Retirements notified before 6 April 2011, but intended to take effect after 1 October 2011 will not be valid unless objectively justified
  • The procedural requirements applicable to a retirement dismissal, currently set out in Schedule 6 to the Employment Equality (Age) Regulations, will be abolished.

Ageing population

The Government hopes the change, one of a number of measures, will encourage people to work for longer thus, easing the strain on public finances arising from the demographic shift in the UK. Under the new system more people would continue to pay tax while at the same time claiming the state pension.

Campaigners such as the Employers Forum on Age have fought against the DRA as ‘ageist’.

However, employers groups have voiced their concerns that scrapping the DRA could make workforce planning more difficult and add to administrative cost.

Further resources on the phasing out of the DRA

Read the Department for Business, Innovation and Skills press release:
More choice on when to stop working - default retirement age retired

Access the Consultation Document:
"Phasing out the Default Retirement Age"

To discuss any employment law issue affecting your business, or you personally, please feel free to contact an employment law specialist using the details provided below.

Contact Details: Michael Pitt

.(JavaScript must be enabled to view this email address)

0161 785 3506

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