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Planning retirement with employees

Retirement age is often a complex and sometimes contentious issue and there is some debate about when employees should leave the workforce.

The Unfair Dismissals Acts 1977 – 2015 says that employees that ‘had reached the normal retiring age for employees of the same employer’ are excluded from unfair dismissal protection.

Stating the retirement age in a contract of employment or handbook is preferable as this clears up any confusion and sets out the expectations on both sides.

Having a retirement policy can go even further, addressing what support will be available – potentially detailing any flexible leave that may be offered and how their retirement will be managed.

An employee that successfully claims age discrimination because they were retired compulsorily could win up to two years’ salary or €40,000, whichever is higher.

How can I protect my business?

A claim for age discrimination can be easily avoided by having clear policies and contracts, outlining a retirement age and complying with the Equality Act 2015.

Get in touch with the HR Dept today about how to make sure your contracts and handbooks are up-to-date and can avoid this issue.