News
Important update on DRA transitional arrangements
4 March 2011
There has been widespread comment that the draft Regulations laid on 16 February to repeal the DRA were defective.The issue was that the transitional arrangements applied only to employees who will attain the age of 65 in the period 6 April 2011 to 30 September 2011, and not to those who had already attained the age of 65 before the date the Regulations will come into effect. This meant that employers were at risk of claims of unfair dismissal and age discrimination in completing some retirements under the DRA procedure.
Amending Regulations are being laid before Parliament today, 1 March and can now be downloaded from the Legislation website http://www.legislation.gov.uk/ukdsi/2011/9780111507735/contents.
The amending Regulations rectify the position in relation to DRA notifications to employees who have reached retirement age before 6 April.
There has also been comment about the extent to which the DRA can continue to apply to individuals after 30 September 2011. On this point the transitional arrangements provide some flexibility so that a notification of retirement of between six and twelve months can be given before 6 April 2011, and an extension of up to six months agreed through the right to request procedure. On this basis, the latest possible retirement date that can be set using the DRA procedure in this way is 5 October 2012.
Acas guidance on the abolition of the DRA has been revised to reflect these two points and is available at http://www.acas.org.uk/index.aspx?articleid=3203.