2nd March 2011
In our last email update we highlighted serious concerns with the draft transitional provisions in relation to the repeal of the default retirement age. In particular, the previous draft regulations as drafted did not permit an employer to safely retire an employee who had already reached the age of 65 by the 6th April 2011 even if the full retirement procedure had been adhered to.
The Department for Business, Innovation and Skills has sought to correct this issue and has produced a second set of draft Regulations repealing the default retirement age.
Under the new draft Regulations an employee can be lawfully retired provided that:
(a) notice of intention to retire is given by 5 April 2011; and
(b) the employee has attained, or will attain, the age of 65 by 30 September 2011.
As the 5 April 2011 is last day that an employer is able to give an employee notice of intention to retire, if the maximum 12 month notice is given, an employee will be able to exercise his or her right to request to work beyond retirement up until 4 January 2012 (which takes into account the minimum 3 months notice the employee must give of their intention to continue working).
However it should be noted; if, following a request from an employee to work beyond retirement, the employer agrees a fixed or indefinite period of working beyond the retirement date of 6 months (which is the maximum extension permitted without the requirement to provide fresh notice of intention to retire) the last possible date for retirement under the existing law is 5 October 2012, as, if the employer agrees to an extension in excess of 6 months which ends after 5 April 2011, a fresh notice of intention to retire is needed, which is not possible after 5 April 2011.
Should you have any queries please contact: