Posted: Friday, 4 January 2019 @ 13:43
According to the TUC there is a significant increase in the number of over-50s and people over the retirement age in work over the past two decades.
The report shows that in April 1992, 56.5pc of people aged between 50 and 64 were employed. This rose to 64.9pc by December 2010. The number of over-64s in work rose from 5.5pc to 9pc over the same period.
TUC general secretary Brendan Barber said low wages and poor pension provision had meant older workers increasingly felt they could not afford to give up work.
This has an impact on the default retirement age.
The legal position is that employers who have 65 as a compulsory retirement provision have to justify such a position.
Alternatively, an employer that wishes to retire an employee will have to be able to show that it has a fair reason for dismissal.
Employers face the double threat of age discrimination and unfair dismissal claims from employees who have been compulsorily retired.
Direct and indirect age discrimination claims are likely to revolve around whether or not the employer was objectively justified in requiring the employee to retire.
With unfair dismissal claims involving retirement, the key issues will be whether or not the employer had a fair reason for dismissal and followed a fair procedure once the decision was made to dismiss the employee.
If the dismissal is an objectively justified retirement, it will be deemed to be for "some other substantial reason" under s.98 of the Employment Rights Act 1996.
Overall what we are seeing big financial stakes for both employers and employees. Stand by for litigation.
Justin Patten, Employment Solicitor