The CIPD was disappointed at the decision
James Brockett
The ECJ said that the age limit was legal if directed towards fulfilling a legitimate employment or social aim
Publication date:
5 March 2009
Britain is justified in having a default retirement age of 65 because the rule does not breach European law, the European Court of Justice has ruled.
In a long-awaited judgement, the ECJ said that the age limit was legal if it was directed towards fulfilling a legitimate aim in employment or social policy. The case was brought by Heyday, the membership arm of charity Age Concern. Around 250 individual cases brought by workers over 65 have been stalled while the ruling was awaited.
The ruling means that any further decisions on the issue will be made by the UK High Court. In the meantime, employers can continue to dismiss employees at 65 without having to give them redundancy payments.
The CIPD, which opposes mandatory retirement ages, was disappointed at the decision.
Mike Emmott, CIPD employee relations adviser, said: “Hopefully, the government will realise sooner rather than later that scrapping the default retirement age is a must, not just to meet the growing demand for working beyond 65, but also because it is hugely beneficial to business and the wider economy. It’s important to remember that older workers bring a wealth of experience and crucial skills to the table.
“This continuing uncertainty about what the law requires means that in practice employers will remain free to dismiss older workers, many of whom simply want to be allowed to carry on working.
“Organisations that have abandoned mandatory retirement and recognise older worker’s value will continue to reap the benefits.”