National Default Retirement Age

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10/11/2009

The national default retirement age of 65 was introduced in 2006 as part of the Employment Equality (Age) Regulations 2006, which were meant to stamp out ageism in the UK workplace. This default retirement age was challenged in the UK and European Courts in the Heyday case, which was heard in the High Court in July 2009.

Mr Justice Blake has now ruled in that case that this default retirement age did comply with an EC Directive against age discrimination. However, he did indicate that there is a "compelling case" for a change in the law and indicated that the position might have been different if the government had not already announced its intention to review the default retirement age next year.

While this ruling is likely to be seen as good news for employers, particularly those who have been retiring employees at 65, it seems that this reprieve for the default retirement age of 65 is likely to be short-lived following the government’s review in 2010. There seems every likelihood that, following that review, the default retirement age will either be raised or abolished altogether.

This document is strictly for general consideration only. Consequently Capital Ideas cannot accept any responsibility for any loss occasioned as a result of any action taken or refrained from as a result of the information contained in it. Each case must be considered on its own facts after full discussion with the client's professional advisers.

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