Right to ask staff to retire ends on 5th April
The Government has now confirmed that it is proceeding quickly
to abolish the default retirement age – which allows employers to
require employees to retire at age 65 – and it will no longer be
possible for employers to serve Retirement Notices after 5th April
this year.
However, there had been a change from previous plans. Provided
an employer serves a Retirement Notice on or before 5th April and
the employee attains the age of 65 or above before 1st October
2011, as much as 12 months’ notice of retirement can be
given. Therefore, the retirement need not actually take place
until the beginning of April 2012.
Act before April to retire employees
Before the law changes, there is still time for you to ask
employees who will be aged 65 or over before 1st October 2011 to
retire. But if you want to do so, you must act quickly – and serve
a written Retirement Notice on the employee by 5th April.
Follow this three-step procedure:
- Look at your workforce and check if any employees will be aged
65 or over before 1st October 2011. This will include any employee
who reaches age 65 before 1st October and any employees who are
already aged 65 or over.
- If you wish to ask an employee to retire, serve a written
Retirement Notice (including notification of the right to request
not to retire) on the employee by 5th April 2011. The Retirement
Notice must give at least six months’ notice but it can set a
retirement date up to 12 months ahead. The retirement date does not
have to be on the employee’s birthday, but the employee must be
aged at least 65 on the proposed retirement date.
- If the employee makes a request not to retire, follow the
statutory procedure to consider that request.
How RBS
Mentor can
help
MentorLive contains full details of the current statutory retirement procedure:
You should also speak to our Telephone
Advice Service on 0800 634 7000 before you do anything, to
discuss your options and to ensure you follow the correct
procedure.
The future without retirement
From 6th April, employees may still choose to “retire” at age 65
(or at any age) but you, as an employer, will not be able to
require them – or even to ask them – to do so.
Employers will have to get used to new ways of managing older
workers and workforce planning. In the coming months,
RBS
Mentor Employment Law
& HR will provide more help and guidance to support your
business in this new environment.