The Default Retirement Age (DRA)
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Today we have a guest bulletin writer, Nick Hine, of DAC who is an experienced down to earth employment lawyer who started his career in the police on the beat, so understands employee issues at a grassroots level, as well as the up to date legal implications.
The Default Retirement Age (DRA) will be consigned to history by October 2011. As a direct consequence, employees will have far greater control over when they decide to retire, a change hastened by an ageing population and the need to save longer for retirement. Employers will no longer be able to use age (retirement) unless they can objectively justify it as a basis for dismissal without risking employees taking action against them for age-related discrimination.
Up to now, some employers have used age-based retirement as an alternative to performance management or capability and this change now necessitates a re-think in terms of dismissal and general management of older employees. In particular, employers need to consider the implications of providing benefits to workers over the age of 65.
Contact Nick Hine on + 44 (0) 207 293 4102 to ask a question about your employees and retirement implications or e mail him nhine@dac.co.uk. For DAC tips on Twitter, follow @daciris To view his profile, click on this link: Nick Hine
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Five practical tips re DRA
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1) Consider the best way to handle older employees; have greater communication about their plans, review appraisal processes and apply them consistently throughout the organisation regardless of age.
2) Consider alternatives to retirement such as reduced or more flexible hours, job sharing or modification of job role. This may appeal to older workers as it suits their changing needs and lifestage.
3) To avoid the risk of age discrimination claims, rely on one of the other potentially fair reasons to dismiss an employee such as conduct, capability, redundancy etc. and follow a fair procedure regardless of an employee's age.
4) Consider which policy it is most sensible to adopt; whether a compulsory retirement age would be justifiable or whether to abandon the concept altogether.
5) Ensure all procedural and policy changes are implemented consistently and fairly without bias.
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