Facing the future without retirement
Following the government’s decision to scrap the default retirement age, it will no longer be possible for employers to serve Retirement Notices after 5th April this year. If you have any employees nearing retirement age, please take the time to check out the Retirement pages on MentorLive or speak to our Employment Law and HR Team about your options.
But looking to the future - what will the impact of the change be on employers? Here we take a quick look at some of the considerations and impacts.
Can employees still retire?
From 6th April, employees may still choose to “retire” at age 65 (or at any age) but their employer will not be able to require them – or even to ask them – to do so.
Importantly, retirement will no longer be exempt from Unfair Dismissal law, so an employee can only retire by resigning from their job.
Can I ask an employee approaching 65 whether he or she plans to retire?
This will be a difficult area. The employer has no legal right to ask such a direct question, and of course asking an older worker this question might amount to unlawful age discrimination.
New guidance issued by ACAS anticipates that employers will be able to ask staff about their future plans in general, but only as part of regular conversations managers will need to have with all staff.
Do I need to consider job applications from people aged over 65?
Yes, all job applicants will be entitled to be treated equally, and not to suffer age discrimination.
What if an older worker is too frail to do the work?
Employers should not assume that older workers will be any less capable of doing the job than younger workers. Employers should use capability and performance management procedures, in the same way they do for other workers.
What is clear is that employers will have to get used to new ways of managing older workers and workforce planning. In the coming months, Mentor will provide more help and guidance to support your business in this new environment.