Retirement age and the Heyday case

Ditch the Retirement Age Personnel Today is supporting a campaign by the Employers Forum on Age (EFA) to force the government to commit to remove the default retirement age (DRA) in 2011. So now's the time for HR professionals to lead and make the decision to ditch the retirement age. You can register your support for our campaign by signing our petition at Number 10.

Retirement age has been a hot topic ever since the government introduced age discrimination legislation in 2006. Personnel Today looks at the employment law surrounding the UK's mandatory retirement age and the background of Age Concern spin-off Heyday's legal challenge.

From 1 October 2006, the Employment Equality (Age) Regulations introduced a national default retirement age of 65.

This does not mean employees have to stay in work until 65. It means employers will no longer be allowed to force someone to retire before then - unless objectively justified where there is a genuine occupational requirement.

 

 

 

 

The default retirement age means that:

• It is lawful for employers to terminate the employment of a member of staff on the grounds of age when they reach the age of 65

• Employers are required to introduce a process that enables employees who are approaching their 65th birthday to request that employment is extended beyond the default retirement age

• Employers could incur costly penalties if this process is not carried out properly and within prescribed timescales.

• Employees have the right to request to work beyond 65 or any other retirement age set by their organisation.

Employers have a duty to consider such requests and must inform staff in writing at least six months in advance of their intended retirement date. For example, if you have an employee due to retire on 1 October 2009, you will need to write to them before 1 April 2009.

The Department for Business, Enterprise and Regulatory Reform (BERR) has committed to reviewing the default retirement age in 2011.

The Heyday challenge to the retirement age

The Heyday case is the name given to a legal challenge by the Heyday membership association, a division of the charity Age Concern.

In this clip, an employment lawyer from law firm Pinsent Masons says that until employers get a final decision in the Heyday case then the stakes remain high.

Heyday argued that the Employment Equality (Age) Regulations discriminated against older workers by introducing a default retirement age. After a lengthy legal process in the UK, the case was referred to the European Court of Justice (ECJ) in 2007.

In September 2008, the ECJ's advocate-general, a senior legal officer, gave his opinion that UK legislation was not in breach of European law. Although not binding, the opinion is a strong indication of the ECJ's final decision, expected later in 2008.

Views among employment lawyers and other experts differ as to the implications of the Heyday opinion is. A selection of legal comments and opinion can be found here.

About 260 employment tribunal cases across England, Scotland and Wales are currently awaiting the ruling on whether forcing workers to retire at 65 is unlawful.

According to Heyday 80% of people in their 50s and 60s believe there should be no mandatory retirement age. Read Heyday's Q&A on its challenge to the default retirement age.

Personnel Today's Ditch the retirement age campaign

Personnel Today is supporting a campaign by the Employers Forum on Age (EFA) to force the government to commit to remove the retirement age in 2011, rather than merely reviewing it. This will provide clarity for both employers and employees and give organisations more than two years to prepare.

The EFA is working with a growing number of employers who are operating successfully without a fixed retirement age and is encouraging other members to follow suit.

Organisations to have scrapped the retirement age Tesco | Civil Service (from 2010) | B&Q HBOS | Hertfordshire County Council Co-op Group | Asda  Marks & Spencer

As part of the campaign to urge employers to take a different approach to retirement, spoof retirement letters (replicating the standard notice of retirement that thousands of workers receive when they reach 65 - regardless of whether they wish to retire or not) were sent to all MPs who were approaching or over 65 years of age.

The letters provoked some MPs to write letters of support for the campaign to end the default retirement age. MPs supporting the campaign have also tabled an Early Day Motion in parliament.

Catharine Pusey, EFA director, says: "The EFA has been working with a growing number of enlightened employers who have chosen not to use the default age and instead allow employees to retire when it suits them. We firmly believe that it is inevitable that the default retirement age will be removed altogether, whatever the final outcome of the Heyday challenge."

---

EFA resources on retirement age and the workforce

The end of the line for retirement ages: the business case for managing without a retirement age

Business case for age diversity

Facts and figures on age discrimination and retirement

Retirement age: External resources

Acas guidance on age and the workplace: a guide for employers

Retirement procedures - BERR guidance

Age Positive's 20 key facts employers need to know about age legislation and retirement

Age discrimination: a guide for employers

Retirement age articles on Personneltoday.com

Ditch the retirement age campaign gets backing of Lords
Personnel Today's drive to force the government to commit to scrapping the default retirement age (DRA) has stepped up a gear after receiving support from leading age campaigner
Physical capabilities must be part of the retirement debate
With reference to your article 'Retirement age must be scrapped sooner rather than

Physical capabilities must be part of retirement debate
With reference to your article 'Retirement age must be scrapped sooner rather than

Retirement age ban is not feasible for all employers
I seem to be a lone voice in the wilderness, but why have many HR practitioners leapt on the 'scrap the

Retirement age must be scrapped sooner rather than later
There was something of a scrap about compulsory retirement when the government was drafting the age legislation that came in to force in October 2006
HR directors back early end to compulsory retirement age
Leading HR directors have backed a campaign by Personnel Today and the Employers Forum on Age
Default retirement age is well past its sell-by date
I have been following with great interest Age Concern's battle with the European Court of Justice to banish the compulsory retirement age of 65
Mandatory retirement age to be scrapped across Whitehall from 2010
The retirement age for junior ranks of the Civil Service is set to be scrapped, the Cabinet Office has announced. Whitehall departments and the Council of Civil Service Unions have agreed that employment policy on mandator

Retirement age and the Heyday case
Ditch the Retirement Age
Heyday warns retirement age challenge is not over yet
The legal challenge against the UK's mandatory retirement age is far from over, Heyday has warned. The advoc

---