Retirement Documents
The law on retirement ages no longer allows for a default retirement age (DRA) and the statutory retirement procedure has been phased out. As there is no longer a DRA employers can only continue to prescribe a compulsory retirement age when they can justify it as a proportionate means of achieving a legitimate aim. The Department for Business, Information and Skills gives air traffic controllers and police officers as possible examples where having a retirement age could be justified. Simply-docs have created some useful Guidance Notes for Employers: Handling Retirements on this subject.
The package of Retirement Documents also includes a straightforward Retirement Policy and some useful Deeds of Variation that can be used to change out of date retirement clauses in employment contracts.
- Retirement Policy
- Retirement Policy (With Objectively Justified Retirement Age For All Employees)
- Retirement Guidance Notes for Employers
- Acknowledgement of Intended Retirement Date
- Acknowledgement of Resignation by Reason of Retirement Letter
- Deed of Variation – Simply-Docs Retirement Clause
- Deed of Variation – Retirement Clause
Retirement Documents is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.
Frequently Asked Questions
Can I still set a compulsory retirement age for my employees?
There is no longer a default retirement age in England and Wales. Since October 2011 employers cannot compulsorily retire employees at a set age unless they can objectively justify it as a proportionate means of achieving a legitimate aim under the Equality Act 2010. Justification is difficult to establish and can only be confirmed by an employment tribunal. The Simply-Docs Retirement Policy and Retirement Guidance Notes for Employers explain how to approach this lawfully.
My employment contracts contain an old retirement clause. Do I need to update them?
Usually, but not always. Contracts that include a compulsory retirement age based on the old default retirement age of 65 may expose employers to age discrimination and unfair dismissal claims under the Equality Act 2010. The default retirement age was abolished in 2011 and a fixed retirement clause is normally direct age discrimination, so most such clauses should be reviewed or removed. A retirement age can still be lawful where the employer can objectively justify it as a proportionate means of achieving a legitimate aim, and some roles such as the police or fire service have ages set by law. Simply-Docs provides two Deeds of Variation specifically designed to remove or replace out-of-date retirement clauses. A deed requires no separate consideration and is legally binding on signature, making it the cleanest way to vary an existing employment contract.
An employee has told me informally that they plan to retire. What should I do next?
Do not treat an informal indication as formal notice. Acas advises that an employee can change their mind at any time before giving formal notice of retirement. Putting pressure on the employee to confirm plans is likely to constitute age discrimination. Once the employee gives formal notice, Simply-Docs provides an Acknowledgement of Intended Retirement Date letter and an Acknowledgement of Resignation by Reason of Retirement Letter to confirm the position clearly and in writing.
What is an objectively justified retirement age and how do I know if my organisation can use one?
An employer justified retirement age (EJRA) is a compulsory retirement age an employer can show is a proportionate means of achieving a legitimate aim, such as inter-generational fairness or health and safety in safety-critical roles. The test is demanding: the aim must be of a public-interest nature, a retirement age must actually achieve it and no less discriminatory alternative would work. The Simply-Docs Retirement Policy (With Objectively Justified Retirement Age For All Employees) and Retirement Guidance Notes for Employers suit organisations meeting this test. If unsure whether you qualify, take specialist legal advice before relying on an EJRA.
What documents do I need to handle a retirement properly and reduce the risk of an age discrimination claim?
The Simply-Docs Retirement Documents sub-folder contains seven templates designed to work together: a Retirement Policy (with or without an employer justified retirement age), Retirement Guidance Notes for Employers, an Acknowledgement of Intended Retirement Date, an Acknowledgement of Resignation by Reason of Retirement Letter and two Deeds of Variation to update old retirement clauses in existing contracts. Using a written policy and consistent acknowledgement letters creates a clear audit trail, which is important evidence if an employee later brings an employment tribunal claim.
Can I ask an employee when they plan to retire?
Employers can raise the subject if there is a genuine business planning reason, provided they make clear there is no pressure to retire and do not raise it alongside performance or attendance concerns. Acas advises it is generally better to let employees introduce retirement themselves, as pressuring someone to retire is likely age discrimination under the Equality Act 2010. A retirement policy supported by consistent, pressure-free conversations is safest, and the Simply-Docs Retirement Guidance Notes for Employers cover how to handle these discussions.