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This change will have a significant effect on the way many businesses plan their workforces and manage staff.
After 1 October, employers will be unable to automatically retire employees because they reach a particular age.
Retiring employees after this date will have to be objectively justified and employers will need clear evidence to defend this action if challenged.
Because of the 6 months notice which has to be given to retire an employee, in practice, employers will no longer be able to compulsorily retire employees using the default retirement age from 6 April.
Employers who fail to embrace this new legislation may face claims of unfair dismissal and discrimination.
Key questions you may ask yourself as an employer include:
- I have an employee who is not performing as well as I would wish, I was hoping to use the DRA to dismiss him when he reaches 65 but now cannot do this because the law has changed. What can I do?
- If I discuss retirement with an older worker can I leave myself open to a claim of age discrimination?
- Can I protect myself by getting an employee to sign a contractual agreement that they will retire at a certain date?
- What can I do if an employee had indicated that they will retire on a certain date but then do not do so?
View Acas answers to these questions and further guidance including the Acas Advisory leaflet - Working without the DRA - Employer Guidance