Thursday, March 5, 2009

Retirement Law

Can employers lawfully force employees to retire at 65?

The European Court of Justice (ECJ) has sent that question back to the UK High Court in the long awaited "Heyday" case. (read the decision at http://curia.europa.eu/en/actu/communiques/cp09/aff/cp090019en.pdf)

The ECJ has ruled that it is for the national court to decide whether the UK legislation based on the EU Directive has a "legitimate aim" in terms of employment policy and labour market objectives.

The charities Age Concern and Help the Aged behind the case were hoping that the retirement age of 65 be abolished but it is now up to the UK High Court to rule on whether the government's default retirement age has a "legitimate aim".

The two charities felt that the UK had not properly implemented the EU Directive in the UK legislation (the Employment Equality (Age) Regulations 2006) because they allow forced retirement and that employers have too much scope for age rules which work against employees reaching retirement age.

For the Employees: There are a large number of cases awaiting the final decision of the High Court and if it rules that the compulsory retirement age is illegal then many older employees who have been forced to retire may be able to claim compensation from their former employers.

For the Employers: On the other hand, there are signs that the UK High Court will confirm that the UK government has properly implemented the EU Directive, and that employers can use the default retirment age of 65.

Do you think retirement should be compulsory at 65? Post your comments now.

Disclaimer: the contents of this blog are not intended form the basis of legal advice. Independent legal advice should be taken from your own solicitor for all cases.

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