The High Court has just handed down its decision in the Heyday appeal and ruled that it is legal for employers to force employees to retire at age 65. In the UK, a worker’s employment can end at the age of 65 without any redundancy payment even if they do not want to retire.
The case was brought by Age Concern and Help the Aged who said that the compulsory retirement age went against EU regulations. As the law stands at the moment, a British employer can dismiss a member of staff without redundancy payments on that person's 65th birthday, as long as they stick to the correct procedure. Employees have the right to request to continue working beyond the date when the employer wants them to retire but the employer can refuse the request and the law does not require them to give any reason for that decision. Employers can also refuse to recruit anyone over the age of 65.
The Government has however announced it is bringing forward a review of the compulsory retirement age by 2010 so the charities believe that this will eventually lead to a change in the rules and so will not be appealing.
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