Heydey - the High Court rules

01/10/2009

By Nick Hobden, Partner and Head of Employment.

Just as we were in the process of finalising this update, the High Court handed down its decision on the Heyday case regarding the default retirement age of 65.

Mr Justice Blake has decided that the Employment Equality (Age) Regulations 2006, which allow employers to force their employees to retire at 65, are not inconsistent with the EU Equal Treatment Framework Directive. He was satisfied that when they were brought into force, the default retirement age was justified, in spite of its discriminatory effect. This decision confirms that employers who have followed or are following the statutory retirement procedure should be safe from claims for unfair dismissal and age discrimination.

However Mr Justice Blake made it clear that there was a compelling case for the default retirement age to rise. This puts the focus back on the Government to consider their position in this regard. When the legislation was first brought in, the Government promised a review of the default retirement age in 2011. This review has now been brought forward by a year to 2010. The process of consultation has already begun and the rumours are circulating about a potential scrapping of the default retirement age altogether, permitting employees to keep on working well beyond 65.

Our own Susanna Gilmartin is a member of the Employment Lawyers Association Working Party, set up to consider the ELA's response to this consultation exercise. So if you want your voice to be heard on this issue, feel free to drop Susanna an email.