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Ten key points to remember about your employee's retirement age

by , 21 October 2013
It's crucial you deal with retirement age correctly. If you fail to do this, you could find yourself fighting automatically unfair dismissal and unfair discrimination claims. Here are ten key points you need to know about retirement age.

If you're not sure of how to deal with issues around retirement, there's no reason to panic.

Below, the Labour Law for Managers Loose Leaf Service outlines ten key points about retirement age.

Here's what you must know about retirement age

#1: Termination of employment when an employee reaches the agreed or normal retirement age isn't seen as a dismissal.

There's no legal requirement that stipulates retirement age. But it's generally accepted that 60 or 65 is an acceptable age to retire.

#2: If you dismiss an employee before that date due to his age, it'll be an automatically unfair dismissal.

#3: If there's an agreed retirement age, for example, 65, you can't terminate employment at age 63, for example, on the grounds that 63 is the 'normal' retirement age.

#4: When there's no agreed retirement age in your employment contract, the rules of a retirement fund should be incorporated into your employment contracts.

#5: 'A normal and an agreed retirement age are mutually exclusive: They can't co-exist. So, if there's an agreed retirement age, you can't claim 'normal' retirement age,' says the Loose Leaf Service.

#6: If you claim 'normal' retirement age, you have to prove it.

#7: You can't impose a retirement age retrospectively (after the employee has already reached that age).

#8: Compelling your employee to retire before the agreed retirement date constitutes an automatically unfair dismissal and is also considered to be unfair discrimination.

#9: Where no retirement age has been agreed and you want an employee to retire at a certain age, you have to consult with him regarding a date of retirement. Make sure the date's in line the 'normal' age for position or profession he's in.

#10: If you've agreed on a new retirement age with employees, retiring them before the new date is an automatically unfair dismissal.

The bottom line: In addition to key points, it's always best to always have a retirement policy in place. This'll help ensure you avoid automatically unfair dismissal and unfair discrimination claims.

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