Default Retirement Age Being Phased Out From 6 April

BWF Members are reminded that the Default Retirement Age (DRA) is to be phased out, meaning that employers will no longer be able to force staff to retire at 65. The changes are due to begin on 6 April.

Currently the DRA enables employers to make staff retire at 65 regardless of their circumstances. The change means that:

• From 6 April 2011, employers will not be able to issue any notifications for compulsory retirement using the DRA procedure.
• Between 6 April and 1 October, only people who were notified before 6 April, and whose retirement date is before 1 October can be compulsorily retired using the DRA.
• After 1 October, employers will not be able to use the DRA to compulsorily retire employees. In order to help employers adapt to the change, the government has worked with ACAS to publish new comprehensive guidance.

The changes will remove the statutory retirement procedures including the 'right to request' working beyond retirement and the requirement for employers to give employees a minimum of six months notice of retirement. Members are also reminded of further forthcoming legislation in April including:

• New benefit rates from week beginning 3 April 2011
• New rules to stop tax-avoidance schemes for employee pay from 6 April 2011
• Increase in employee personal allowance and National Insurance
  contributions
• Basic State pension increase
• Further extension of right to request flexible working