News
Equality Bill Update
Thu 8th Apr 2010
Following the failure in 2009 of the Heyday case, in which the High Court ruled that it was lawful for employers to insist that staff retire at 65, the government brought forward its planned review of the default retirement age and as a result consultation is now underway.
However, an amendment to the Equality Bill calling for the removal of the current default retirement age has been withdrawn for a second time.
The amendment was calling for the default retirement age to be abolished altogether from 2011, which will mean employers will have to consider very soon how to respond to a major change to workforce planning. Options such as gradual departures and flexible or part-time contracts may be the way forward together with effective performance management practices.
At present, the Employment Equality (Age) Regulations 2006 permit employers to dismiss, on the grounds of retirement, those employees who are aged 65 or over without this being regarded as age discrimination, although employers must go through a "duty to consider" procedure, under which employees may request that their employment should continue.
The government intend to further review possible changes to the retirement age this summer, and will consider extending it or removing it completely.