Saturday, 1 October 2011

Default Retirement Age Scrapped

The previous regulations allowed employers to set a default retirement age (i.e. force employees to stop work) at 65 or higher.  However, it was unlawful to set a retirement age under 65 or retire an employee who is under 65 (or the employer's alternative selected retirement age if different), unless it was 'objectively justified' .  A default retirement age at which employers could force their employees to stop work is different from a 'normal retirement age' in a pension scheme, which is the age when pension benefits can be taken. 
From 1 October 2011, employers will not be able to compulsorily retire their employees unless the retirement can be 'objectively justified'

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