Knowledge Centre

No European support for retirement age challenge

Elderly people on a bench
Existing UK rules on the rights of employers to enforce retirement at 65 have been backed by a European courts' advocate-general.

While the decision is not binding, it could spell the end of hope for an estimated 260 tribunal cases that are seeking to oppose UK laws by looking towards the European courts for direction.

Currently employers are allowed to dismiss workers at 65 against their will without having to pay them redundancy, something which affects an estimated 25,000 people a year.

The challenge was brought by Heyday, part of charity Age Concern, which argues that imposing a mandatory retirement age is discriminatory.

Gordon Lishman, director general of Age Concern, said ageism "is not a minority issue", but is the most commonly experienced form of prejudice, with more than a million people already working past pensionable age.

Ailsa Olgive, director of Heyday said they would keep up the fight despite the setback, going back to the High Court in London for a final decision.

"Denying people work because of their date of birth is grossly unfair, and in these tough times we expect more people will need to carry on working into 'retirement' in order to make ends meet," she added.

IMAGEPA

Business insurance is issued by Royal & Sun Alliance Insurance plc, which is authorised and regulated by the Financial Services Authority (Reg No. 202323). All offers subject to availability. For your protection, telephone calls may be recorded or monitored. Discounts based on prices available for like-for-like RSA policies. Apart from Van where following our May 2008 rate review over 10% of customers could pay at least 25% less. Half price breakdown is available to customers buying a Van or Business Car policy starting on or before 31st December 2008. Standalone breakdown is not available.