Court rules in favour of default retirement age

Employers will still be able to force older workers to retire at 65, following a landmark ruling by the High Court.

Under current law, a worker’s employment contract can be terminated when they reach the default retirement age of 65, even if they wish to continue working. Those subject to the rules are not entitled to receive any redundancy payment.

Although staff have the right to request to continue working beyond the default date, the employer may refuse the application without providing a reason for their decision.

Whilst upholding the existing law, the judge did assert that there was a ‘compelling case’ for increasing the default age in the future.

With the Government now bringing forward a review of the retirement age to 2010, many experts anticipate the current rules could soon change.

The law was challenged by Age Concern and Help the Aged, although neither charity is expected to appeal against the court’s decision.

John Wadham, from the Equality and Human Rights Commission, said: ‘The number of older employees is increasing and the law should support those who wish to carry on working and making an economic contribution.

‘The judge has sent out a strong signal that it is only a matter of time before the default retirement age of 65 is removed, and we will consider what action we could take next.’

Meanwhile, the British Chambers of Commerce has welcomed the ruling. Adam Marshall, director of policy at the organisation, said: ‘Employees already have the right to request to postpone their retirement, and we believe the existing rules allow for the fairest outcome on both sides.

‘Businesses need a period of stability to allow all the recent changes to employment legislation to bed down. They do not want more tinkering with employment rules.’