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Posts Tagged ‘default retirement’

The EAT has held that a request, under the Employment Equality (Age) Regulations 2006, to continue working beyond the normal retirement age must be considered in good faith. To satisfy the requirement of good faith the employer had to genuinely consider whether such a request should be accepted.

In this case the employer had a blanket policy of retiring its staff when they reached the age of 65. Whilst such a policy was legally permissible, the EAT said that the employer was still required to consider whether an exception should be made. The EAT’s view was that the statutory procedure followed by the employer was a sham as the meetings it held with the employee were mere formalities at which nothing would be said or done to overturn the blanket policy.

Case reference: Compass Group Plc v Mr K A Ayodele

Employers have not been able to issue default retirement notices since 6 April 2011 when the default retirement age was abolished. However, this judgment may still impact on employers that notified employees of their impending retirement before that date and are still going through the procedure. In such cases employers should enter into discussions with an open mind. Employers are also advised to inform the employee that the discussions are being held on this basis both in correspondence and at the start of the meeting itself.

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