Swindon firms are being advised to ensure their retirement and employment policies are water-tight ahead of new legislation that stops workers aged over 65 from being automatically retired.
Between April 6 and October 1 this year only people notified before April 6 and whose 65th birthday is before October 1 can be compulsorily retired using the default retirement age (DRA).
After that, employers will not be able to use the DRA to compulsorily retire employees who have reached 65.
Swindon-based employment law specialists Lemon&Co Solicitors say dismissing an employee after this date on grounds of retirement will be age discriminatory, unless it can be objectively justified.
It would also be regarded as an unfair dismissal unless a fair reason for terminating their employment can be established.
It remains to be seen whether employers will be able to justify company-wide retirement ages and what alternatives there will be to compulsory retirement, according to Lemon&Co.
Employment solicitor Lauren Harkin said: “The law changes many things for employers and there are lots of potential pitfalls ranging from knowing what to do with existing staff who still want to retire when they are 65 to dealing with issues around maintaining and dealing with an ageing workforce.
“In addition, businesses should consider what amendments need to be made to company policies and procedures in order to comply with the new law.
“This has already proven to be a highly talked about and visible piece of employment legislation so people will be more aware of their rights. This means employers really will have to get their heads round it to be able to deal with the changes appropriately.”
The DRA enables employers to force staff to retire at 65 regardless of their circumstances. The Government believes the new law will give employees more choice about when to stop working as people live longer, healthier lives. It could also boost to the economy. However, the change remains controversial given the huge number of under 25s in the UK who remain unemployed.
Lemon&Co hosts a free seminar on the changes for employers on May 10. Contact Lauren Harkin on 01793 553954 or email lauren.harkin@lemon-co.co.uk to book a place.
