Pictured above: Joanne White
A Shropshire solicitors is urging employers in the county to
have their say following proposals to phase out the default
retirement age across the country.
The Government is already committed to removing the default
retirement age, which currently allows employers to retire
employees at the age of 65 or over, provided that they follow
the statutory retirement procedure.
The main issue now is how the Government is going to achieve its
commitment and it is currently consulting on its proposals.
Employers have until October 21 this year to respond and the
Government intends to publish its response in November 2010. Use of
the default retirement age will start to be phased out from April
2011.
Joanne White, of Linder Myers Solicitors in Shrewsbury, says:
"Employers will still be able to operate a compulsory retirement
age, provided that they can objectively justify it. The
Government's proposals call these employer-justified retirement
ages. To justify a compulsory retirement age, the employer will
have to be able to show that their decision to retire someone is a
proportionate means of achieving a legitimate aim.
"Employers will also be able to stop using a compulsory
retirement ages, with individual retirements being decided on a
case-by-case basis. The Government intends to issue guidance on
managing without a retirement age but again, employers will have to
show that the decision to retire someone is objectively
justified.
"An employer that wishes to retire an employee will be obliged
to follow a fair procedure under the ordinary unfair
dismissal rules and rely on one of the potentially fair reasons for
dismissal set out in section 98 of the Employment Rights Act 1996
(capability, conduct, redundancy, retirement, illegality or some
other substantial reason)."
Many employers are worried about what will happen if they have
an employee over the age of 65 who they feel are underperforming in
their role.
But Joanne says solicitors will be on hand to assist employers
with any problems they may come across as a result of the
changes.
She adds: "An employer must not discriminate against an employee
who is underperforming by disciplining or dismissing him or her on
the ground of age.
"The employer should deal with the employee in the same manner
that it would an underperforming employee under the age of 65, by
following a fair capability process that focuses on the employee's
performance."