New Code of Practice on retirement management

03/04/2018 08:24:00

The Workplace Relations Commission (WRC) has published a Code of Practice (CoP) on longer working.

Best practice for longer working

The code sets out best practice on the management of retirement in organisations, an issue which has come to the fore in employment law over the last five to ten years.

Síobhra Rush of Leman Solicitors and a member of the Society’s Employment & Equality Law Committee advises that the CoP sets out best practice under the following headings:

Utilising the skills and experience of older workers

The CoP makes it clear that by managing an older and diverse workforce in a positive way, businesses can deliver great value. This arises by harnessing and accommodating the experience and skills of older workers to the advantage of the business by way of various measures set out in the CoP. 

Objective Justification

The CoP refers to section 34(4) of the Employment Equality Acts 1998-2015 (EEA) and provides some helpful examples of what constitutes a legitimate aim in objectively justifying setting retirement ages. This includes:

  • Intergenerational fairness and motivation - to allow for the promotion of younger workers
  • Health and safety considerations
  • Creation of a balanced age structure across the workforce
  • Dignity considerations - to avoid capability issues, and
  • Succession planning.

The Retirement Process/Retirement Arrangements

When an employee is approaching retirement, the CoP confirms that best practice is to notify him/her in writing, six to twelve months in advance of the intention to retire him/her on the contractual retirement date. The CoP also encourages employers to consider the provision of supports such as pre-retirement courses, flexible working arrangements and/or counselling to assist employees transition to retirement.

Dealing with Requests to Work Longer

The CoP includes advice for employers on responding to requests from employees seeking to work beyond retirement age. In summary, they should be considered carefully against objective criteria.

Ms Rush advises that, as with most WRC Codes of Practice, this is not legally binding but is likely to have probative/evidential value in any cases dealing with compulsory retirement. As such, it should be consulted in advising any employer/employee clients in addressing this issue.

Law Society eZine

This article originally appeared in the March 2018 Law Society eZine. For more information, and to subscribe, see eNewsletters.