This guidance is designed to:

• Help employers follow fair procedures when retiring employees.
• Inform employees of their rights and what to expect as they approach retirement age.

It applies to any retirement-related dismissal below pensionable age. While following this guide is not a legal requirement, it outlines best practices that can help demonstrate fairness in the eyes of a Tribunal.

To justify dismissal on the grounds of retirement, employers should:

• Have a clear retirement age policy for the relevant employee group.
• Ensure the employee is at or above that age at the proposed retirement date.
• Initiate the retirement process 6–12 months before the intended date.
• Terminate the contract on the agreed retirement date.

Tribunals will assess whether the retirement was fair based on the reasonableness of the employer’s process.

Employers must act reasonably and consistently. Key practices include:

• Clearly define why retirement at a specific age is necessary.
• Avoid assumptions based solely on age.
• Apply consistent policies across the organization.
• Base decisions on the employee’s actual ability to perform their role.
• Begin consultations early to understand employee expectations.
• Explore reasonable adjustments (e.g., flexible hours, alternative roles).
• Keep detailed records of discussions and decisions.
• Avoid relying solely on cost-saving as justification.

Employers should also consider:

• Role-sharing or part-time arrangements.
• Transitioning employees to less demanding roles.
• Succession planning, supported by evidence.

If performance is a concern, employers should follow established procedures such as:

• The Code of Practice for Disciplinary and Grievance Procedures.
• The company’s Capability Procedure.

These require:

• A fair investigation.
• Clear communication of performance expectations.
• Opportunities for improvement.

Proportionate Means & Legitimate Aim

To defend against age discrimination claims, employers must show that retirement: 

• Serves a legitimate business need.
• Is a proportionate response.
• Has no reasonable alternative.

Examples of legitimate aims:

• Business efficiency (not solely cost-cutting).
• Health and safety concerns (with supporting evidence).
• Legal restrictions (e.g., pilots restricted from flying in certain jurisdictions).
• Job-specific training or fitness requirements.

If you're being asked to retire below pensionable age: 

• Remind your employer of your right to claim unfair dismissal.
• Submit a formal request to continue working.
• Be aware of the 7 week and 6 day deadline to file a Tribunal claim.
• Consider applying for flexible working arrangements.

If you intend to retire an employee:

• Confirm the retirement is genuine - not a cover for another dismissal reason.
• Provide ample notice and allow the employee to request continued employment.
• Maintain evidence of objective justification in case of Tribunal review.