Legal News - February 2011
Retirement at Age 65It had been thought that provided the appropriate notices were issued prior to April of this year, a compulsory retirement at age 65 or over prior to October of this year would not be unfair or trigger a claim for age discrimination. Doubt has now been thrown on that by the publication of the draft regulations. It may well be an error in drafting but the regulations appear to suggest that such a dismissal may well be unlawful and constitute age discrimination. Employers contemplating dismissing by reason of retirement before October of next year would be well to keep an eye on the progress of the regulations. Restrictive CovenantsThere is always a risk for employers who dismiss an employee in breach of contract (i.e. with no or short notice) that any restrictive covenants might be held to be unenforceable. A recent case considered whether this would also apply to an unfair dismissal. The courts have held that as the law stands, it will not apply to an unfair dismissal.
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