15/04/2011 HR Update - Transitional arrangements for phasing out the Default Retirement Age (DRA)

The Default Retirement Age is being phased and is now in the transitional period, running until 30 September 2011. The last day notice could be served on an employee using the default retirement age was the 5th April 2011.

On the 6th April 2011, transitional rules came into force which means employers cannot issue notice under DRA and will have to be particularly careful to comply with the new rules, if they want to avoid the risk of an Employment Tribunal claim from employees who are or are approaching the age of 65.

During the transitional period, retirements that are already on-going can continue through to completion, provided that:

  • A notification of impending retirement was issued by the employer prior to 6th April 2011;
  • The intended date of retirement falls before 6th April 2012
  • The DRA procedure, as set out in the previous Employment Equality (Age) Regulations 2006, is followed correctly (including the employee’s right to request to stay on is given serious consideration by the employer); and
  • The other requirements of the former DRA procedure are met (e.g. the person is 65 or over on or before 30th September 2011; or is the employer’s normal retirement age if this is higher than 65).

From the 1st October 2011 the default retirement age and the statutory retirement procedure will cease to apply.

For further information, advice or a Retirement policy please Contact Us 

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