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The default retirement age (DRA) of 65 was abolished a while ago, yet this is still a hot topic for employers. Without the DRA, employees are working for longer – more often than not, this is due to financial reasons. It has been widely reported in the press recently that many employees will have to work late into their seventies or early eighties in order to be in a financial position whereby they can actually afford to retire. This places many employers in a difficult position. How can they balance an increasingly ageing workforce with their need to succession plan? Additionally, how should employers broach those difficult conversations with longstanding employees that are no longer capable of carrying out their duties?

How to handle those difficult conversations

In the absence of a fixed retirement age, employers will need to have open and honest discussions with all their employees regarding their plans for the future. Some employers fear that initiating any such discussions with their employees could result in a discrimination or constructive dismissal claim. This is not necessarily correct. One natural opportunity to discuss future plans with employees is as part of the appraisal procedure. Employees of all ages should be asked the same question about their short, medium and long term objectives and plans. Such discussions will usually be deemed to be reasonable and not discriminatory by an Employment Tribunal as part of succession planning. Of course, if employers have to go down the performance or ill health procedure with an employee, there is no absolute guarantee that the employee will not seek to bring a claim for discrimination. However, by having effective policies and procedures in place, employers will be in a stronger position.

So if you would like assistance in ensuring your appraisal are conducted consistently, want help with succession planning or help with the difficult conversation, please contact us on Jane.Blackwood@HRBusCons.co.uk or on 07810 563 676.

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