Age Discrimination Default Retirement Age (DRA)

Age Discrimination Default Retirement Age (DRA) Alison Collins 9th February 2011

Default Retirement Age Employment Equality (Age) Regulations Northern Ireland 2006 • Introduced a Default Retirement Age (DRA) • DRA : To be phased out • Changes will be applicable to all employers • No exceptions Age Discrimination (DRA) 9-2-11

Timeframes • From 1st October 2011: No employee can be compulsorily retired using DRA because they have reached 65 – unless objectively justified • On or after 6th April 2011: Employers prevented from issuing new notifications of retirement. Age Discrimination (DRA) 9-2-11

Transitional Arrangements • Transitional Period: 6 April 2011 – 30 September 2011 • 30th March 2011: Last day to provide 6 months’ notice using DRA • 30th September 2011: Last day employees can be compulsorily retired. Age Discrimination (DRA) 9-2-11

Transitional Arrangements • During transitional period – retirements that have already begun can continue if:- • Notification of retirement issued on or before 30th March 2011 • Late notification issue between 30th March 2011 and 5th April 2011 • Date of retirement fails before 1st October 2011 • DRA Procedure followed • Requirements of DRA met • Short two weeks’ notice of retirement – repealed on 6th April 2010. Age Discrimination (DRA) 9-2-11

Removal of DRA What does this mean for Employers? • Enforced retirement only permitted if it can be objectively justified • Review of contract and policies required • Ensure – employers treated fairly and consistently regardless of age • Performance issues – must be addressed regardless of age. Age Discrimination (DRA) 9-2-11

Removal of DRA What does that mean for employers’ • If use a retirement age: Objective Justification • Difficult to justify • Evidence will be required to support it • Consider: Is there any alternative Age Discrimination (DRA) 9-2-11

Removal of DRAWhat does this mean for employees • Changes will not affect an employee’s state pension age and entitlements – can be separate from retirement age. • Older employers – can still voluntarily retire • Cannot be forced to retire at a set age unless objective justification. Age Discrimination (DRA) 9-2-11

Poor Performance • Discussion to establish the facts • Failure to address with older workers – discriminatory towards younger workers • Establish reasons • Set improvement periods • Agree if training would assist Age Discrimination (DRA) 9-2-11

Disability Discrimination • Risk of DDA claim due to older worker acquiring impairments a younger employee does not have. • Reasonable adjustments may be required. • Caution required due to age discrimination. Age Discrimination (DRA) 9-2-11

Insured Benefits Examples: • Income protection, sickness and accident insurance, private medical insurance. • Exempt from principle of equal treatment on grounds of age • Employers can cease to provide these benefits once employee reached 65. Age Discrimination (DRA) 9-2-11

Employer Planning: Workplace Discussions • All employees • Future aims • Identify training and development needs: key is to be consistent • Future performance • Record outcome • To avoid age discrimination complaints – ask all workers about their future plans, aims etc. Not just older ones. Age Discrimination (DRA) 9-2-11

Termination of the Employment relationship with DRA • Employers must use one of the fair reasons for dismissal - Employment Rights (NI) Order 1996: • Examples: • Capability • Misconduct • Redundancy • Some other substantial reason Age Discrimination (DRA) 9-2-11

Age Discrimination Default Retirement Age (DRA)