Employers are still coming to terms with the practical challenges of managing older workers since the abolition of the default retirement age.
Following the abolition of the default retirement age back in April 2011, dismissals based on an employee’s age could amount to direct age discrimination. This change was certainly good news for the individual, however employers are faced with the uncertainty about when older employers may elect to retire. This uncertainty impacts an organisation’s long-term business plans as to when employees will be leaving the organisation and when they will need to be replaced.
How and when employers can set a retirement age
In removing the default retirement age, the Government wanted no worker to be deprived of the opportunity to work simply because of their age.
Although in most circumstances it will not be objectively justifiable for employers to apply their own retirement age instead, employers do have the opportunity to produce evidence to show that setting a retirement age in certain jobs within their organisation is justifiable. They would need to show:
- That they are trying to achieve a legitimate aim; and
- That setting a retirement age is a proportionate way of achieving that aim.
Proving this can be difficult to demonstrate and it will be necessary to provide evidence if challenged; assertions alone will not be enough. Reasons for employers to provide their own retirement age could include:
- Upholding health and safety standards. Employers would need to demonstrate that the risk relates to a specific activity and is at a high level; and
- Enabling workforce planning. Employers would need to demonstrate that business aims cannot be properly achieved without advance information about future vacancies.
For help and advice on this topic or related issues, please contact Emily Morrison by calling 01727 798106 or emailing emily.morrison@salaw.com.
