SUMMARY OF THE DRAFT REGULATIONS REPEALING THE DEFAULT RETIREMENT AGE

We have a second set of draft Regulations to repeal the default retirement age, correcting the drafting errors in the original version which we published on this website two weeks ago. However, the new draft goes even further and there are complex provisions which provide (in summary) as follows:

Provided the employee has attained or will attain the age of 65 by 30th September 2011 and notice of intention to retire under the current provisions is given by 5th April 2011, an employee can be lawfully retired.

There is a final cut-off date of 5th January 2012 for an employee to exercise his or her right to a request to continue working beyond retirement. This means that an employee who receives on 5th April 2011 twelve months' notice of retirement has until 5th January 2012 to exercise the right to request that he/she may continue working.

The last possible date for retirement of an employee under the current Age Regulations will be 3rd October 2012. This would be the case where an employee who was given notice on 5th April 2011 of intention to retire him on 4th April 2012 could then be given a maximum six months' agreed extension, taking him to 3rd October 2012.

Normally there is a period of 40 days before regulations under Statutory Instruments can come into force but this can be reduced by using the affirmative procedure in Parliament.  It has been reported that this procedure will be used in this case with the result that the Regulations could be in force by 5th April 2011.

This is a broad summary of the new Regulations but for specific advice on individual cases please contact Jane Laidler.

For more detailed information and to discuss these and other relevant issues, please click here to register for our Employment Seminar on 31st March.