The end of the default retirement age

By LBV

03 Aug 2010

The news that the Government is planning to scrap the default retirement age, meaning staff could not be sacked simply for reaching the age of 65, should be welcomed.

The current legislation means bosses can dismiss staff once they have reached 65 without paying any financial compensation. The only legal obligation to employers is to discuss the plans with the relevant employee six months before they reach 65.

The Government has already announced that the age at which workers can draw a state pension should increase to 66, so this latest news is the next logical step.

Campaigners have called the announcement a victory against ageism, and the Government has said workers will not be forced to work past 65, but rather be given the option under the proposals. Of course, working past 65 can increase a pension pot and potentially allow staff to maintain a certain standard of living, so many will find this tempting.

The proposed plans, which are now entering a period of consultation, could be in effect as early as April next year, with a full introduction from October 2011. The news should be welcomed, but equally businesses – particularly SMEs – must be prepared to implement the new regulations when they come into effect.

The current legislation means an employer can dismiss a member of staff at 65 simply by following a procedure, and the employee cannot really challenge the decision.

In some circumstances it may well be an individual may no longer have the adequate abilities to carry out their job at the age of 65, but in others it is certainly the case at the moment, that an employer can dismiss a fit, able and effective employee just for reaching 65.

Employers will still be able to dismiss their staff at 65 if their performance is poor or they simply aren’t up to the job they are paid to do – this won’t change.

It has seemed too many that the current legislation goes against the principle that employers should not discriminate on the grounds of age. However, businesses will have only a short space of time to prepare for the changes, and it is important to get good advice on how to incorporate any new legislation into employment procedures.

Chris Boyle, head of employment at Napthens solicitors.

Enjoyed this? Read more from LBV

Latest news

1

REVEALED: Sub36 Awards winners 2026 S36 Winners

REVEALED: Sub36 Awards winners 2026

16 Oct 2026

2

Three in a row for Lancaster accountants at national awards The Team At Ics Celebrating Their Win

Three in a row for Lancaster accountants at national awards

15 Oct 2026

3

Victorian Plumbing records 11 per cent revenue increase Victorian Plumbing staff

Victorian Plumbing records 11 per cent revenue increase

15 Oct 2026

4

Preparation matters for MTD changes Bilal Piperdy

Preparation matters for MTD changes

15 Oct 2026

5

Training for scheme to boost number of women in technology Aerial photo of Lancaster University Campus

Training for scheme to boost number of women in technology

15 Oct 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

Commercial Planning Application workshop
Commercial Planning Workshop 20 Oct 2026

Commercial Planning Application workshop

Online, Accrington , BB5 0PF

12:00 - 13:00

They’ve Already Decided About You – Sales Geek Sales Club: how buyers judge you before you speak – and what to do about it
Lancaster And Morecambe Logo 1 21 Oct 2026

They’ve Already Decided About You – Sales Geek Sales Club: how buyers judge you before you speak – and what to do about it

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

Mock Tribunal - step inside an employment tribunal… without the risk
LBV Website Events GraphicMock Tribunal 21 Oct 2026

Mock Tribunal - step inside an employment tribunal… without the risk

Online, Preston, PR1 3JD

09:30 - 12:30

Preston Freelancer Meet-Up: October
Freelance Meet Up 22 Oct 2026

Preston Freelancer Meet-Up: October

Society1, 9-10 Cross Street, Preston, PR1 3LT

10:00 - 12:00

Girlie Night Out
Lancaster And Morecambe Logo 1 23 Oct 2026

Girlie Night Out

Lancaster Brewery, Lancaster, LA1 3LA

19:00 - 23:00

North West Business Expo
LBV Website Events GraphicBusiness Expo 1 23 Oct 2026

North West Business Expo

Toughsheet Stadium , Bolton, BL6 6JW

09:00 - 15:00

The PM+M Autumn Budget seminar - East Lancashire
Autumn Budget 2026 LBV 29 Oct 2026

The PM+M Autumn Budget seminar - East Lancashire

Blackburn Rovers Football Club (Premier Suite), Blackburn, BB2 4JF

08:00 - 10:30

Lancashire Finance Leaders Forum: The Autumn Budget in Focus
ian-UmTFcwHLPC0-unsplash.jpg.jpg 29 Oct 2026

Lancashire Finance Leaders Forum: The Autumn Budget in Focus

Farington Lodge Hotel, Stanifield Lane, PR25 4QR

08:00 - 10:00

Autumn Budget 2026
Lancaster And Morecambe Logo 1 30 Oct 2026

Autumn Budget 2026

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin