Despite lobbying by employer groups for delayed implementation, the Government announced on Thursday that the Default Retirement Age (DRA) will be phased out this year as planned. The Government also published its response to its consultation on phasing out the DRA and ACAS guidance for employers on working without the DRA. Age Positive Guidance is also available on the Business Link website.
This change means that:
- from 6 April 2011, employers will not be able to issue any new notifications for compulsory retirement using the DRA procedure;
- between 6 April and 1 October 2011, only employees notified of their intended retirement date before 6 April and whose retirement date is before 1 October 2011 can be compulsorily retired using the DRA;
- from 1 October 2011, employers will not be able to use the DRA to compulsorily retire employees; and
- from 1 October 2011, no employee can be compulsorily retired because they have reached the age of 65 (or other contractual retirement age) unless that retirement can be objectively justified.