Press release

Forced Retirement at 65?

22-Oct-07
Local solicitor and employment law expert Robert Hill of Wycombe law form Reynolds Parry Jones is alerting local businesses to a new European directive concerning older workers.

A recent European Court ruling has allowed employers to effectively force employees to retire on their 65th birthday. Although this always used to be the case, recent amendments to the law appeared to allow employees to continue working almost indefinitely.

The decision gives some certainty to the business community but the ruling is a considerable blow for those who have already planned to work after their 65th birthday and who may not now have that opportunity.

Many businesses value the contribution that their older employees make to the business in terms of knowledge and experience and indeed many employers will want to retain older staff for these very reasons. However, the judgement is likely to mean that there will be no right for ex-employees to claim unfair dismissal purely on the basis that they have been retired on their 65th birthday provided that the employer follows the correct procedure.

Whilst the Court accepted that such mandatory retirement ages appeared on their face to be in breach of the EC Equal Treatment Framework Directive, it held that such retirement ages were a proportionate response to achieving the aim of promoting opportunity of employment and reducing unemployment.

Despite the decision, businesses should note that failure to follow the prescriptive rules set out in the UK age regulations will mean that the dismissal of an individual because they have reached retirement age is likely to be discriminatory on grounds of age and may also constitute unfair dismissal. The costs to businesses who fail to implement the new regime into their current contracts and policies is therefore likely to be considerable.

For further advice on Age Discrimination and Retirement contact Robert Hill on 01494 525941 or by e-mail – Robert.hill@rpj.uk.com.