The law will change again on 1st October 2006, when the Employment Equality (Age) Regulations come into effect. Age Discrimination will be added to the long list of existing anti-discrimination legislation. The retirement age will remain at 65, but unless employers follow the correct procedure, they may be ordered to pay compensation.

Since October 2004 employees have been able to appeal dismissal decisions. From October 2006 the right to appeal will also apply to retirement. When employees reach 65, they will no longer automatically retire. Employers will need to inform staff before the proposed retirement date. If the retiree wants to continue working, he or she may ask to delay retirement, and ask to work for an extended period. This request will need to be objectively considered and fair reasons must be given for refusing to extend employment. Any employer failing to justify the retirement decision may be acting unlawfully. Affected employees may have a claim in the Employment Tribunals for unlawful dismissal.

Previously being over 65 has prevented employees from making claims for unfair dismissal and redundancy. The new legislation will remove this age bar.

This additional Equal Opportunities Policy will hopefully mean a happier and more productive workforce and an extended period of employment for those who wish to continue in employment past their 65th birthday. Please note: there are no limits to the number of extended periods of employment that can be agreed to.

In addition to the changes to retirement at a fixed date, employers must not refuse to offer the same training, recruitment and promotional opportunities to all.

It is anticipated that the statutory retirement age will gradually be increased over the next few years. This should not affect employees’ rights to choose early retirement. Neither will it affect pension rights.

If you have any queries on this topic or any other employment related matter, please contact Liz Whitehead at Jackaman Smith & Mulley on the telephone number listed or at liz.whitehead@jsm.co.uk.