Default Retirement Age to be scrapped

The Government has announced plans to scrap the Default Retirement Age (DRA) on 1 October 2011.

Presently, employers can use the DRA to compulsorily retire employees when they reach the age of 65. However, the Government’s plans would mean that: -

· From 1 October 2011, employers would no longer be able to compulsorily retire employees.

· From 1 October 2011, an employer would only be able to use a compulsory retirement age to dismiss employees if it could be objectively justified (although this is expected to apply to limited classes of employees, such as police officers and air traffic controllers).

· From 6 April 2011, employers would no longer be able to issue notices of compulsory retirement.

· Between 6 April and 1 October 2011, only employees who received notices before 6 April 2011 (to take effect before 1 October 2011), could be compulsorily retired under the DRA.

The Government has launched a consultation process on its proposal, which is open until 21 October 2010.