Age discrimination has been illegal for over a year. So how are you fairing with this new law and the complicated new procedures that came with it? Here is our summary of what you should be doing.
Retirement Age
Age Discrimination Legislation introduced a statutory default retirement age of 65. Compulsory retirement age before 65 will not be considered lawful unless there are absolute genuine business reasons to do so.
Full Retirement Procedures Now in Force
All employees that are due to retire are now subject to full retirement procedures. This means that having an informal discussion with an employee about impending retirements will
not suffice and could result in the employee being entitled to compensation.
Notification
Employers must notify employees of their impending retirement and remind an employee of their right to request continuing working past this date no less than 6 months and no more than 12 months from the intended date. Late notification of the intended date could result in an employee being entitled to compensation. If you think you have left it too late, then it might be safer to delay the intended retirement date.
Working Past the Intended Retirement Date
If your employee wants to continue working past their intended retirement date, they must make their request at least 3 months and no more than 6 months before the intended retirement date. They should say if they want to work on indefinitely, for a fixed period or until a set date.
Duty to Consider
You as the Employer have a duty to consider an employee's request to work beyond their normal retirement date. If you agree to this request you do not need to have a meeting; you just inform your employee verbally and in writing that their request has been accepted and amend their contract of employment to reflect the new intended retirement date. With just a few exceptions, once the new retirement date has been agreed, you have to go through the same process as you would have done originally next time they are due to retire.
Turning Down a Request
If you want to turn down an employees request to work past their intended retirement date you must have a meeting. Remember that the employee is entitled to be accompanied at this meeting.
They also have the right to appeal against the decision. You don't, however, have to say why you are turning down a request.
Following the correct procedures should prevent any claims for unfair dismissal or age discrimination. This doesn't mean you can act inconsistently unfairly; a disgruntled employee could an still challenge your decisions on other grounds e.g. sex or disability discrimination. Remember a retirement dismissal that has not followed the statutory procedure could result in a tribunal award of eight weeks' pay and compensation for unfair dismissal and/or age discrimination.
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