The Government has confirmed today that the default retirement age (DRA) will be removed. This means that employers will no longer be able to use the DRA to retire employees after 1 October 2011. The latest employers can give the minimum notice of retirement to those employees who will be 65 or over before 1 October is 6 April 2011. John Cridland, the CBI's Director General designate, called the abolition of the DRA the "number one employment regulatory issue" this year, but, in reality, there is very little time for employers to prepare for the changes.

What do employers need to do?

Employers wishing to take advantage of the DRA before it is abolished should notify any employee whose 65th birthday falls before 1 October 2011 of their intention to retire the employee. Such notification should be given before 30 March 2011 in order for retirement to take place on or before 30 September. However, provided the notification is given prior to 6 April 2011, it will still be valid, albeit that the employee may claim compensation for short notice. On 6 April 2011, the door will close to all retirement notifications which rely on the DRA.

Thereafter, employers can only force employees to retire at a particular age if they can objectively justify that age as a proportionate response to a legitimate aim - not an easy test to pass. Careful consideration will need to be given to the appropriate retirement age and the reasons for it.

Alternatively, employers may wish to take the opportunity to review their procedures for managing employees and their performance as a way of managing business needs.

If you need advice on managing the transition, please contact Joanna Blackburn, Partner and Head of Employment Department, or a member of our Employment Department who would be happy to help.