Our retirement policy comes in two versions. The first may be used where there is no default retirement age; the second includes a default retirement age.
Note: attempting to compulsorily retire an employee can not only result in the unfair dismissal of that employee, but can also result in a claim for age discrimination.
Policy with no default retirement age
This retirement policy is intended to guide the treatment of employees where the company has no fixed retirement age. It is an essential policy for any employer that has employees at or approaching the age they would have previously retired.
Current legislation prohibits the compulsory and routine retirement of employees. This policy sets out in a simple and easy to follow way how employers may take steps to plan their business when employees wish to voluntarily retire or change their role.
Policy with default retirement age
This is an essential policy for any employer that has retained a fixed retirement age and has employees at or approaching that age.
As noted above, current legislation prohibits the compulsory and routine retirement of employees. However, if the company can justify having a fixed retirement age then they may still dismiss an employee who reaches that age. This policy seeks to address the risk of claims for unfair dismissal and/or age discrimination in businesses where a fixed retirement age can be justified. This policy sets out what steps a company should take when considering relying on a fixed retirement age, and these steps are set out in a simple and easy to follow way.