Under the current system, employers can oblige staff to retire at 65 regardless of their circumstances. Ministers have decided the rules must change because people are living longer, more active lives and should have more choice over when they stop working.
The DRA will be phased out between 6th April and 1st October this year. It means that from April onwards, employers will not be able to issue any notifications for compulsory retirement using the DRA procedure.
Between April and October, only people who were notified before 6th April, and whose retirement date is before 1st October can be compulsorily retired using the DRA.
After 1st October, employers will not be able to use the DRA to compulsorily retire employees.
However, it will be possible for employers to have a compulsory retirement age if they can “objectively justify it”. This could relate to specific jobs such air traffic controllers and police officers.
Employment Relations Minister Edward Davey said: “We are putting in place support to help business adapt to the change, but it is important to remember that about two-thirds of employers already operate without fixed retirement ages – and many of those with retirement ages already offer flexibility for workers to work longer.”
Please contact our Employment team if you would like more information about the DRA or any aspect of employment law.
