The Issues Which Employers Need To Take Into Account*

By January 5, 2022Employment Law

The Issues Which Employers Need To Take Into Account*

In providing for a retirement age employers may well need to take into account issues such as income protection policies, deaths in service policies, the provision of health care and pension contributions. It may well be in setting out a retirement age and catering for older workers and longer working that some of these benefits will cease at a particular date. It is important again to be able to justify this. For example, it may well be that due to the cost of keeping in place insurance such as for Death in Service Benefits that this may be a cost that has to cease on a particular date. It is important then to document fully in policies and contractual documents that an employee who continues to work on past a set retirement date either on their existing contract or on a fixed term contract may no longer be able to access these benefits.

Employers also need to consider how longer working may impact on the organisation as regards potential for career development by younger workers. This can be a reason for having a compulsory retirement age for certain categories of workers for example having a compulsory retirement age for a Chief Financial Officer may well be able to be justified on the grounds of providing for career opportunities for younger employees. However a similar argument is unlikely to be successful when it comes to a person who may be doing a lower level job in the Finance department such as a clerk.

One issue which is yet to be addressed is going to be the issue of individual drawing down their pension from the company and continuing to work at the same time. This is one which employers need to address. Of course there is no difficulty with an employee drawing down the State Pension and continuing to work.

The issue of forced retirement is a regular feature which is coming up. There are significant numbers of claims which are going against employers at the present time. Many of these are settled but equally many of them run for hearing. In reality a lot of these cases are won by employees because employers do not have appropriate policies and procedures in place.

*Before acting or refraining from acting on anything in this guide, legal advice should be sought from a solicitor.

*In contentious cases a solicitor may not charge fees or expenses as a proportion or percentage of any award or settlement.

Richard Grogan

Author Richard Grogan

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