Retirement Procedures
Retirement Age
Employers who want to retire an employee must do so no earlier than the default retirement age of 65, or their normal retirement age if later.
If the normal retirement age is below 65, it must be objectively justified.
The retirement procedures introduced on 1 October 2006 mean that employers have to:
- give employees advance notice of retirement; and
- tell employees that they can ask to work for longer.
Employers who want to terminate the employee’s employment before the normal or the default retirement age must have another fair reason for dismissal and follow the normal dismissal procedures.
Notification
In order to ensure that a retirement dismissal is fair you must give the employee at least six months’ written (and no more than 12 months notice) of the intended retirement date and of his or her right to request to continue working beyond that date. You will have to meet with the employee to discuss the request and the employee has the right to appeal if you refuse to grant his request not to be retired.
What happens if I fail to comply with these notification requirements?
You may have to prove that the reason for dismissal was retirement and that it wasn’t unfair.
I can get my pension at 60 and I don’t want to work longer
Individuals are free to retire when they want. However, you should make sure that your income in retirement will meet your needs not just immediately but in the longer term too.
My employer has a normal retirement age of 68, can I be made to retire at 65?
Your employer won’t be able to rely on the default retirement age of 65 to retire you earlier than he would otherwise. That is likely to amount to unfair dismissal unless your employer can objectively justify the earlier retirement date.
NB: This does not affect the position on any longer period of notice due under a contract of employment. Employers should also bear in mind that under current employment law they have already have an obligation to give notice of dismissal, whether on retirement or for some other reason.