Retirement may be retired

Following much pressure, a court case and a check on the country's finances, the Government is to bring forward new rules from October 2011 that abolish the default retirement age (of 65). In other words, employers can choose to let staff stay on for as long as they wish or they can show them th

Following much pressure, a court case and a check on the country's finances, the Government is to bring forward new rules from October 2011 that abolish the default retirement age (of 65).

In other words, employers can choose to let staff stay on for as long as they wish or they can show them the door at an age they consider appropriate.

However, employers need to be aware that the rules effectively change from April 2011. At present, the law requires employers to give employees that are to be compulsorily retired six months notice. If an employee is 65 after April 2011, but before October, by definition, they cannot be given the required six months notice.

The interim rules that cover the period from April to October 2011 are still to be announced.
This was last published in November 2010

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