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Contract of Employment

Phase out of Default Retirement Age

Written 06 January 2012

The phasing out of the default retirement age (DFA) of 65 and the accompanying statutory retirement procedure came into force on 1 October 2011.

This meant that 5 April 2011 was the last day on which notice of intended retirement could be issued and 12 January 2012 will be the last day on which an employee, issued with 12 months notice of retirement on the last named date, can make a request to continue working beyond retirement.  Therefore, the last day on which a notice or retirement, extended by 6 months with the employers agreement, can take effect, will be 5 October 2012.



If an employer wishes to retain a default retirement age, you will have to justify this objectively and this needs to be supported by evidence, and costs alone may not suffice.

Employers must make sure that they review all contracts and handbooks to ensure that any reference to a Default Retirement Age has been removed and refer to the Statutory Retirement Procedure.

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