mandatory retirement

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Or forced retirement is a contractual term that states the age at which an employee will end their employment with an employing organization and begin their retirement. Mandatory retirement is no longer lawful in some countries as a result of age discrimination legislation. In the UK, however, the 2006 age regulations permit mandatory retirement. The regulations state that 65 will be the default retirement age though employers will be able to select a later age if they wish. Mandatory retirement below 65 can also be chosen but only if it is objectively justifiable; that is, meets a real need of the business. Employees wishing to work beyond the mandatory retirement age have a right in law to make a written request to this effect, which must be given serious consideration. The regulations also impose a new obligation on employers to inform employees in writing six to twelve months before retirement that their retirement date is approaching and that their work will terminate unless they submit a request to continue beyond the age of mandatory retirement. The retention of mandatory retirement under the UK regulations has been challenged in the courts by Heyday, the membership arm of the campaigning organization, Age Concern. At the time of writing a decision on the case is awaited from the European Court of Justice. [See ageism.]

Subjects: Human Resource Management.

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