Employment Matters January 2011

The clock is ticking...
Cancel your order for carriage clocks and other retirement gifts because time has been called on the default retirement age (DRA). The Department of Business, Innovation and Skills has confirmed that the current DRA of 65 will be phased out from 6 April 2011 and will be abolished on 1 October 2011. The last date on which employees can be compulsorily retired using the DRA is 30 September 2011. 

This means that the last date on which an employer can provide the six months’ notice required by the default retirement provisions is therefore 30 March 2011.

It has long been recognised that people are living longer and consequently need to work for longer in order to save for retirement. In 2008, 16% of the population was aged over 65, but this is predicted to rise to 23% by 2033. Removing the DRA is seen as a way of encouraging people to work for longer and save for retirement.

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Copyright 2011 Cobbetts - All Rights Reserved - January 2011.  The content of this newsletter is for information only and should not be relied upon as a substitute for legal advice.