Friday 20 April 2012

Can my employer force me to retire at any age?


In the UK the Default Retirement Age (DRA) was set at 65 for both men and women in 2006, often resulting in forced retirement. If an employee wanted to work beyond that age, they had to make a formal request to their employer. The employer then had a duty to follow the proper procedure, including at least one meeting with the employee, when considering the matter. However, the employer was at liberty to refuse the application as they wished.

The DRA was abolished on 5th April 2011. However, if your employer had given you notice of the date of your retirement before that date and the proper procedure had been followed, your employer can still force you to retire at age 65 or over. Therefore, forced retirement is still possible if an employee reached 65, or any higher retirement age as normal in a particular company before 1st October 2011. Due to the maximum amount of retirement notice being one year, under the old system, the last forced retirements will be in October 2012.

It may be the case that an employment contract stipulates that an employee must retire at a certain age (known as Employer Justified Retirement Age), however, an employer will have to show fair reasons for this. For example, if a job involves strenuous physical activity or high mental readiness, an employer may be able to argue for a particular retirement age on health and safety grounds. If the employer proceeds with retiring an employee but is unable to justify forced retirement, the employee may be able to make a claim to an Employment Tribunal citing age discrimination or unfair dismissal. If an employee is faced with this situation, they should seek the advice of a specialist employment lawyer.

It is the case that employers are within their rights to start disciplinary proceedings or dismiss employees on grounds of non-capability, no matter what their age. However, it is unlawful to use a person’s age as a reason for disciplinary action, due to age discrimination rules. Employers also must not victimise an older employee if they have made a complaint about forced retirement or about harassment because of their age. Thus, the Equality Act 2010 together with the abolition of the DRA means that all employees should have equal job security, no matter how old they are.

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