Partner Article

Retirement age judgement met with cautious response

A Supreme Court ruling justifying the implementation of a workplace retirement age has been met with a cautious response from the business community.

The court unanimously dismissed an appeal by a solicitor who was forced to retire by a city law firm just after his 65th birthday. The claimant had wanted to continue working, but his request was turned down.

His employer argued that the retirement policy ensured younger workers had a reasonable expectation of progression, whilst facilitating staff planning and limiting the need to expel partners for poor performance.

Commenting on the ruling, David Gibson Employment and Pensions Partner at DWF said: “The decision by the Supreme Court shows that employers can still make age related decisions about employees providing that there is a legitimate reason for so doing.

“Employers should be still deal with such matters in a sensitive and pro-active manner.

“It would be dangerous for employers to think they can merely force people out without justification.”

The CBI expressed concerns that today’s ruling will do little to fill the vacuum left by the scrapping of the Default Retirement Age.

Neil Carberry, CBI Director for Employment and Skills policy said: “If employers want to set a retirement age that is suitable for their workforce, and know for sure whether it is legitimate, they will still have to go through a costly and lengthy legal process.

“The Government cannot continue to pass the buck. Employers need to know how to handle the sensitive issue of retirement, with adequate protection to discuss plans with their staff, and better guidance on when a retirement age is justifiable.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .