Current News
Can I compulsorily retire staff at 65?This was the question posed to the European Court of Justice. They have decided that there is nothing wrong in principle in having a state retirement age and that it did not automatically offend the Equal Treatment Framework Directive. However, the matter returns to the UK High Court for them to determine whether retirement at 65 is a legitimate aim and whether the means of achieving this are 'appropriate and necessary'. The exception is that the High Court will allow the status quo. So what is that status quo? The 'default' retirement age is 65. If an organisation has a lower retirement age they must have an objective justification. Between 6 and 12 months prior to the sixty fifth birthday, the employer should write to their member of staff, reminding them that 65 is the normal retirement age and that they will be expected to retire on that date. The employer must also advise that there is a right to seek retention beyond 65, which request must be put in writing 3 months before retirement date. You must then hold a meeting to consider that request and if declining it, offer an appeal. The employer is under no obligation to accede to the request, nor to explain their decision, but that decision must be confirmed in writing. Unless the employee is actually redundant at that time, by coincidence, retirement of itself does not qualify for a redundancy payment. If you do allow staff to work beyond 65, please do not put them on different terms e.g. shorter notice, fewer hours, reduced bonus as it invites an Age Discrimination claim, unless of course the terms are specifically agreed and for example the employee is willing to carry on working on a reduced working week. So you can retire staff at 65 (to be reviewed in 2011) but you must follow the consultative agenda set out above and you must avoid imposing reduced terms for those who work on beyond the age of 65. Roger Vincent Employment Consultant Published in South East Business, May 2009 |