Law on Default Retirement Age Clarified
Posted on by Angela Rhodes
The Supreme Court passed judgement this week, allowing companies to set their own retirement age for staff provided that the reasons for doing so met the objectives of both the Company and public policy. Employers should however tread cautiously… Leslie Seldon had been a senior civil litigation partner at the law firm, Clarkson Wright and Jakes and was required to retire when he reached 65 years of age. The default retirement age (DRA) was abolished in October, 2011, but this is the first occasion that its exemption provisions have been tested legally. The law firm stated that its retirement policy was exempt from the requirements of the DRA legislation as it allowed:
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- Effective succession planning of both the workforce and partners
- Provided associates with an opportunity of becoming partners in the firm, thus aiding retention, and
- Avoided the need to dismiss partners as a result of poor performance.
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