17.02.11

Late Change in Default Retirement Age Transitional Arrangements Causes Confusion

Employers, employees, employment lawyers and others were thrown into confusion yesterday by a last minute change to the transition arrangements applying to the abolition of the Default Retirement Age (DRA). 

The revised timetable shown on the Acas website yesterday differed from both the one recently set out by both the Government in its response to the recent consultation and by Acas in its initial guidance.

The change means that employers wanting to use the DRA process before it is abolished to lawfully dismiss someone for the purposes of retirement must still give at least six months notice of retirement to any employee whose 65th birthday falls on or before 30 September, the retirement can come into effect any time before 5 April 2012.  The earlier guidance issued by Acas was that the last retirement date for lawful retirement dismissals would be 30 September 2011.

The Department for Business, Innovation & Skills published the Draft Regulations abolishing the DRA today.

 

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