Blow for age campaigners as EU rejects compulsary retirement claims

AGE equality campaigners have been dealt a blow by European Court of Justice which has rejected Age Concern’s claim that compelling people to stop work at or after 65 without compensation breaches EU equality requirements.

The legal opinion will affect hundreds of people forced to retire against their wishes who are claiming compensation through UK employment tribunals.

Around 260 cases are already on hold, awaiting the outcome of the Age Concern test case, and thousands more claims could follow from pensioners forced to retire against their will.

The Advocate-General has argued that a fixed retirement age is not necessarily contrary to EU rules – although the decision is not binding.

The UK Regulations, introduced in 2006, do ban discrimination on grounds of age, but excludes pensioners, who can be dismissed at 65 without redundancy payments, or at the employer’s mandatory retirement age if it is above 65.

Paul Menham, a solicitor at Gordons and an employment specialist based in Leeds said: “What this is likely to mean is that employers will continue to be able to fairly dismiss employees when they reach the age of 65 on the grounds of retirement. It is unlikely that the law will change to provide employees with the ability to challenge the employer’s decision provided that the employee is over 65 and given at least six months notice of retirement.”

Diarmuid Deeney, partner and employment law specialist at Halliwells LLP said: “This decision has not come as a great surprise as the European Court is reluctant to interfere too much with national policies which seek to achieve legitimate goals. Compulsory retirement is a way in which to address rising unemployment so from this perspective, today’s decision is a good one. However, we are all living longer and healthier lives and the news will not be welcomed by those who are approaching retirement age and are still perfectly capable of performing their job.

“I expect employers will be greatly relieved that they don’t have to change their retirement policies, which they would certainly have had to do had the current law been ruled to be in conflict with EU legislation.”

Campaigners are arguing that setting an age limit is discriminatory, and have vowed to continue the fight.

Katja Hall, the CBI’s director of employment, said the Advocate-general’s opinion was a “sensible and fair” approach to the issue.

“Employees already have the right to request postponement of retirement. Our surveys show that just over 30% of employees requested postponed retirement in the last year and over 80% of these requests were granted. This right ensures that employers and employees sit down and find solutions that work for both sides.

Gordon Lishman, director general of Age Concern, said: “Millions of older workers in the EU will be fuming that the Advocate-general thinks ageism counts for less than other forms of discrimination.”

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