Guidance for employees about retirement

The statutory default retirement age (DRA) of 65 years was removed in 2011, meaning that Employers cannot automatically end your employment when you reach that age anymore (in most circumstances). We look at what this actually means for Employees and Employers in our article here.

So what does this actually mean?

For many workers this was great news, as they could carry on working past age 65 if they wanted to. However, this change in the law doesn’t affect the fact that you can still choose to voluntarily retire at age 65 if you wish (and your employer should notify you of this).

Now, Employers who wish to end your employment will either have to:

  • Follow a fair procedure under normal fair dismissal rules, e.g. a dismissal for conduct or capability (treated like any other employee), otherwise they could face an unfair dismissal claim and an age discrimination claim from the employee, or
  • Keep their own compulsory retirement age for all employees called an EJRA (Employer Justified Retirement Age) but be able to justify this. Such dismissals would be on the grounds of ‘some other substantial reason’ and would also need to follow a fair procedure* – giving the employee adequate notice of impending retirement, allowing them to make representations before a decision is made, which includes considering any requests for them to stay on beyond the compulsory retirement age, allowing a right to appeal.

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