We all know that on October 1, 2011 compulsory retirement at age 65 is no longer going to be a fair reason for dismissal.  However because of the procedure required to compulsory retire an employee age 65 employers actually have only until Thursday 31st of March 2011 to start the procedure which will permit them to fairly compulsory retire an employee.  The procedure is complex and a defect in following the procedure will result not only in an unfair dismissal but almost inevitably in liability for age discrimination.

Whilst it is obvious that all employees at age 65 are no longer as productive as they were we are  aware of many occasions where employers have held back from taking action in respect of unsatisfactory performance during the final year or years of employment recognising that years of loyal service should be rewarded by toleration.  The employer has been comfortable in the knowledge that the employee can leave their employment with dignity and an unblemished record.

After October 2011 it may not be possible for an employer to still set a compulsory retirement age however it will be necessary for this to be objectively justified and follow the current case guidelines if age discrimination claims are to be avoided.  In the vast majority of cases it would appear that there will be no alternative but to take an employee through a disciplinary or capability procedure to terminate their employment.

If you have any queries in relation to the above article please do not hesitate to contact one of our specialist employment lawyers, Sue Ball or John Taylor who will be happy to assist you further.