The Equality Act – An Age Old Problem

• The Employment Equality (Age) Regulations 2006 first introduced the concept of age discrimination in employment

• Retirement age of 65 lawful• Duty to consider procedure• “Tick box” process

The Future of the Retirement Age

Government Consultation Process

• Commenced in July 2010• Fundamental change to the law – general

retirement ages imposed by the employer no longer lawful

• Consultation concluded on 21 October

Government Consultation Process

• What is the new law likely to be?• The concept of an enforced retirement age to be

phased out from 6 April 2011• Transitional arrangements will mean that

retirements already underway can be completed so long as:-– The notification was issued before April 2011– The intended date of retirement is before 1

October 2011 and– All of the requirements of the current procedure

are met

Government Consultation Process

• After 1 October 2011 there will be no concept of a dismissal on grounds of retirement

• All employees of any age can only be fairly dismissed on one of the existing grounds

• Dismissal on grounds of age per se is likely to be both unfair and discriminatory

• The exception will be where the employer can objectively justify an enforced retirement age

Where did Enginuity Limited go Wrong?

• Only 3 months notice of the intended retirement age was given

• No consideration that Hamish has a contractual period of 12 months – did the contract provide for a payment in lieu provision?

• Not clear whether the duty to consider procedure was followed

• If Dave did continue in employment beyond 65, could Enginuity withdraw any of its insured benefit schemes on grounds of cost?

Is the new Law a burden or an opportunity for employers going forward?

• Lots of discussion about employers “window of opportunity” ending on 1 April 2011

• Is it time for a complete change in mindset?

To be continued???