Date 29 October 2008
Retirement age has been a hot topic ever since the government introduced age discrimination legislation in 2006. Helen Duffy, one of SA Law's Employment Solicitors, looks at the employment law surrounding the UK's mandatory retirement age.
From 1st October 2006, the Employment Equality (Age) Regulations established a national default retirement age of 65. This does not mean employees have to stay in work until 65. It means employers will no longer be authorised to make someone retire before then, unless it is objectively justified, as a proportionate means of achieving a legitimate aim.
The Heyday case is the name given to a legal challenge by the Heyday membership association, a division of the charity Age Concern.
Heyday argued that the Employment Equality (Age) Regulations discriminated against older workers by introducing a default retirement age. After a drawn-out legal process, the case was referred to the European Court of Justice (ECJ) in 2007.
The main aspect of this challenge was that Heyday were arguing that the national law allowing employers to dismiss employees aged 65 or over for retirement, was in breach of the European Directive, and therefore should be withdrawn. In July 2008, the ECJ's advocate-general, a senior legal officer, gave his opinion that UK legislation was not in breach of European law.
It is now for a national Court to determine whether the rule is, in fact, objectively justified. Although the opinion of the Advocate General is not binding, it is generally followed by the ECJ and any deviation from this opinion seems unlikely.
Regardless of what the eventual outcome will be (the ECJ hearing will not take place until early 2009), it does remain the view of some that retirement at the age of 65 will eventually be scrapped, given the economic reality that most people have to work beyond normal retirement ages. The UK Government has further confirmed that they will review this law in 2011.
For further advice or guidance, please contact a member of the emplyoment team on 01727 798000.
© SA Law 2008
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