Retirement ruling raises concern

A law firm is urging agriculture firms to pay close attention to retirement age law after the High Court ruled that the current default retirement age of 65 is lawful - for now.

Mace & Jones said the ruling meant that employers are now able to compulsorily retire employees aged 65 and over.

The move could mean employees will not be able to claim unfair dismissal or age discrimination charges against their employer.

Head of employment law Martin Edwards said: “Bosses can now retire someone on ground of age at 65 providing the statutory retirement procedures are complied with. We understand that this is the end of the Heyday test case claim as it is not to be appealed. Those employers with current claims from employees who were retired which have been stayed by the tribunals awaiting this decision, are likely to see the claims dismissed in the near future.”

The ruling reinforce the current laws for now, but there has been concerns over the fact the government has brought forward its review of the default retirement age to next year.

Furthermore, the Equalities and Human Rights Commission has asked the government to amend the Equality Bill, which is currently going through Parliament, to abolish the default retirement age altogether.

Edwards said: “It is possible that we will see the ability to compulsorily retire abolished altogether in the near future. Some of the comments in this judgment may make it difficult for the government not to increase the retirement age to at least 68 or 70. Moreover the Equalities and Human Rights Commission has asked the Government to amend the Equality Bill, which is currently going through Parliament, to abolish the default retirement age altogether.”

Edwards said the case showed the vital need for bosses to take advice when dealing with employment law issues. He said: “As this case shows employment law is complex and changeable. Furthermore given its nature employment law is unfortunately very easy to get wrong for employers.”