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The three Rs – retirement, rest and redundancy: recent developments


In recent months, questions on compulsory retirement, sickness and holiday, and redundancies have been prominent on many employers’ radars. Unsurprisingly, tribunals have grappled with similar issues. This briefing from UK law firm Nabarro outlines:

- Recent trends on justifying compulsory retirement ages, and the steps you should take in the near future to prepare for statutory changes to the retirement age regime.

- A recent decision on the interrelation between long-term sickness, holiday pay and PHI pay. A pro-employer Employment Tribunal decision goes potentially some way towards helping employers to limit their financial exposure in respect of holiday pay accruals by an employee on long-term sickness leave;

- An EAT decision on the issue of bumping and a vertical pool of selection for redundancy purposes. This decision serves as a poignant reminder of the importance of identifying the correct pool of selection in redundancy cases. Where the potentially redundant employee is fairly senior, a vertical (downward) expansion may be required.

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