The government have confirmed that the default retirement age (DRA) will be phased out this year, meaning that employers will no longer be allowed to dismiss staff because they have reached the age of 65. Employers will not be able to issue retirement notices to employees after 30th March 2011.
Currently an employer can issue an employee with a notice to force retirement at the age of 65 without paying any financial compensation, with the normal legal obligations in place such as a six month previous meeting and relevant notice.
With this change from the government I encourage employers to hold ongoing communications with their staff to establish their plans, since employees will then have the power to decide their own retirement date.
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