LTB 140/11 - Default Retirement Age

[TrueBlueTerrier]

LTB 140/11 - Default Retirement Age

No. 140/11
Ref: PTC/RE/jc/420
Date: 11 February 2011


TO ALL POSTAL BRANCHES


Dear Colleague


RE: Default Retirement Age

Branches will be aware that subject to parliamentary approval the default retirement age (DRA) is being phased out over a transitional period running until 30 September 2011. Details will be set out in regulation coming into force on 6 April 2011. The new legislation will ensure the last day that employees can be compulsorily retired using the DRA is 30 September 2011, so the last day to provide 6 months’ notice required by the DRA provision is therefore 30 March 2011. Employers still have the opportunity to use the DRA between 30 March 2011 and before 6 April 2011 but if they do so, they must choose the short notice provisions under which any employee could claim compensation (subject to a maximum of 8 weeks wages). Employers will not be able to issue a new notification of retirement using the DRA on or after 6 April 2011.

Representatives from Royal Mail Group and CWU have formed a joint working group to consider the impact of the new regulations on exit and recruitment processes, benefits as well as the wider HR policies. The business has indicated it will be its intention to continue with the duty to consider process until 30 March for any employees who are due to retire before 1 October 2011.



Attached is a joint briefing being communicated today by both parties.



Any enquiries regarding this LTB should be addressed to Ray Ellis’s department,
quoting reference PTC/RE/jc/420.

Email address: rellis@cwu.org



Yours sincerely


Ray Ellis,

Assistant Secretary




JOINT BRIEFING NOTE


Default Retirement Age

- Subject to Parliamentary approval, the Government confirmed on 13 January that the Default Retirement Age (DRA) is being phased out. The Regulations will come into force on 6 April 2011 but there is a 6 month period before it comes into effect.
- This means that from 1 October it will no longer be possible for companies to compulsory retire people at 65 without an objective justification

What this means for Royal Mail Group?

Managers will continue to follow RMG’s existing policy and processes until the changes come into force. This means that the Duty to Consider process continues until 30th March, for those due to retire before 1st October 2011.

Representatives from Royal Mail Group and CWU have formed a joint working group. The DRA Working Group will be considering the impact of the new Regulations on exit and recruitment processes, benefits, as well as wider HR policies.

[cathy xxx]

I work with a guy .. fit healthy comes in and does his 40 hrs ,which is more than i can say for some younger ones , turns 65 the last week of march , wants to stay but the mcm wont budge , its really sad cos hes a nice guy and he pulls his weight such a shame.