Changes to legislation that come into force in October of this year mean that since 5 April 2011 it is no longer permissible for an employer to give notice of retirement.
From the 6th April 2011 there are transitional provisions that have been introduced but it is important to note that 'acceptable reasons to dismiss' no longer includes retirement.
Our bestof human resource specialist - Denise Mather of DEMand RESULTS, says ...
The transitional provisions from the 6 April to October 2011 have 3 criteria that need to be satisfied:
notice of intended retirement must have been issued on or before 5th April 2011
the employee being retired must have reached the age of 65 (or the normal retirement age if that is higher) on or before 30th September 2011
all of the statutory elements must have been met.
Should an employee or employer want to extend the retirement date this will be permissible under the transitional arrangements but only if the extension is 6 months or less. If the extension is longer than 6 months then the employer will either need to justify a retirement age or deal with individuals on a one by one basis.
How can an employer deal with the abolishment of default retirement age?
Denise says, ... there are a few options and each will require careful consideration of the legal and commercial implications:
abandon fixed retirement ages
introduce an employer justified retirement age – will need to have a legitimate aim
dismiss for ‘Some Other Substantial Reason’
dismiss for capability – be sure to both apply and show a fair and consistent approach.
The actions that I would suggest need to be taken are:
look at appraisal process as this is the best way to deal with capability
review sickness policy in relation to older employees
train managers to deal with capability issues.
If you would like further guidance or support with this issue or the actions required then please do contact me - Denise Mather at DEMand RESULTS on 01455 240 638.
What clients say about Denise Mather ..
"What I have valued most about working with Denise Mather of DEMand RESULTS has been the face-to-face contact, understanding of our business and Denise’s commercially focussed knowledge. In particular, the simple way that things are explained is excellent and knowing that my HR policies and procedures are always up to date and clear gives me real peace of mind. The quarterly reviews and ad-hoc meetings are a great opportunity to air any issues that my employees may have. The meetings provide the impetus to talk through the issues, look for options and mediate solutions, which has been really a great help to me personally." Nicky B, May 2011.
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