Challenge to compulsory retirement age
The Employment Equality (Age) Regulations 2006 permit employers to dismiss on the grounds of retirement those employees who are aged 65 or over without this being regarded as age discrimination, unless a normal retirement age in excess of 65 applies to that employment. An employer wishing to retire an employee compulsorily at any age is required to follow a procedure, giving them between six months and 12 months notice, and informing them of a right to request not to retire.
The charity Heyday, part of Age Concern, has disputed the legal retirement age of 65, and there will be a hearing at the European Court of Justice. According to Personnel Today this will now take place on 2 July, which is months earlier than the 2009 date previously expected. Heyday claims that the UK government is in breach of the EU’s Equal Treatment Directive by imposing a mandatory retirement age. If the challenge is successful, employees who were made to retire at 65 could claim age discrimination – some have already puts claims on record in case the UK government loses.
Currently employers have a choice of continuing to retire employees and face potential liability if Heyday is successful, or remodelling their retirement policy to remove a mandatory retirement age. Hopefully the situation will become less confusing after 2 July.
