Charities lose age discrimination case

The High Court ruled today that employers can continue to require their workers to retire at the age of 65.

Two charities, Age Concern and Help the Aged, brought a challenge (known as the "Heyday challenge") against the UK retirement rules, because they believed that the rules were in breach of the EU Age Discrimination Directive.

Under the law that was being challenged,  employers can ask employees and other workers to retire at the “default” retirement age of 65.

Provided that an employer follows the proper procedures, it can dismiss an employee when he or she reaches this retirement age without fear of facing awards for unfair dismissal or redundancy payments.

If employees want to continue working, they can ask to work beyond the retirement age, but their employer can refuse their request.

Following today's ruling, this position remains unchanged.

There are currently several hundred claims from aggrieved retirees waiting to be dealt with by the Tribunals, which have been on hold pending today's decision.

It remains to be seen how the Tribunal Service deals with those cases, but reports indicate at this stage that the charities are unlikely to appeal as there may be a change in the law.

This is because the Government has announced that it will bring forward their proposed review of the compulsory retirement age to 2010.

Whilst the current uncertainty over retiring staff at 65 has, at least for now, been resolved (which is good news for employers),  questions remain as to how long the current position will last.

Ashfords LLP is regulated by the Solicitors Regulation Authority. The information in this note is intended to be general information about English law only and not comprehensive. It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.