The UK law changes on 1 October 2011 when the Default Retirement Age is abolished and employers will no longer be able to issue notifications for compulsory retirement.
In the recent case of Compass Group plc v Ayodele, the UK Employment Appeal Tribunal (“EAT”) has ruled that an employer must give genuine consideration, in good faith, to an employee’s request to work beyond retirement under the Employment Equality (Age) Regulations 2006 (the “Age Regulations”). A blanket refusal to grant any such request without giving any consideration to the employee’s representations will result in the dismissal for retirement being unfair.
Mr Ayodele was employed by Compass as a kitchen porter. Compass gave him written notice to retire on his 65th birthday, the normal retirement date for Compass employees. He was also notified of his entitlement to request an extension to continue working beyond 65 in accordance with the statutory retirement procedure set out in the Age Regulations.
Mr Ayodele duly made the request and had two meetings with his manager, following which he was sent a letter refusing his request but giving no reasons. His appeal was then dismissed without reasons and his employment was terminated on his 65th birthday. He brought claims in the Employment Tribunal for unfair dismissal and age discrimination, complaining that his employer had failed to follow the statutory retirement procedure as it had not given genuine consideration, in good faith, to his request for an extension. He was awarded £15,981, which included a compensatory award for loss of earnings.
This case is of interest to those employers who have already served notice of retirement on employees on or before 5 April 2011 which, because of the forthcoming abolition of the default retirement age of 65 on 1 October 2011, is the last date on which employers could serve valid retirement notices under the Age Regulations.
The Institute of Hospitality has published two guides relevant to this imminent change in the law:
Managing Without a Default Retirement Age (DRA) in Hospitality
Performance Management for All Ages in Hospitality Businesses
