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Emplyment Law Update

10/03/2009

Emplyment Law Update

Retirement Ruling – Good News for Employers!

Heyday (a branch of Age Concern) contended through judicial review that UK’s retirement age of 65 was inconsistent with European law. Further it submitted that the UK should have a list of objective and reasonable justifications of the differences in treatment.

This matter was referred to the European Court of Justice that has now given its decision that:

  • The default retirement age along with the resulting difference in treatment may be justified so long as the UK courts can establish (using a high standard of proof) the legitimacy of the aim.

  • UK does not have to draw up a precise list of the differences in treatment which may be justified by a legitimate aim.

This case now returns to the High Court, which will have to determine whether current law is justified.

KBL Comment – This is a good outcome for employers. However, the important decision will follow once the High Court has determined whether the retirement of workers at the age of 65 is ‘justified by a legitimate aim’ and whether the means of achieving that aim are ‘appropriate and necessary’. Regardless of what happens in this case, the Government is committed to reviewing the retirement age in 2011. When the retirement age is reviewed we would expect the retirement age to be increased.

If you require advice or assistance in respect of the above or any other employment matter, please call or email John Hassells, Head of Employment on 01204 527777.

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