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| Industry News |
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RETIREMENT
October 2009
A DECISION ON THE STATUTORY RETIREMENT AGE?
Up for debate. We recently referred to the “Heyday” case. This is the challenge brought by Age Concern to the current statutory or default retirement age (DRA) of 65. The European Court of Justice said it was up to the individual member states to decide if it met their own “social and economic policy objectives”.
Yes or no? The matter was due before the High Court in the autumn. Yet in July it was widely reported that the hearing had been concluded. As a result, many of you have asked about the outcome and if you need to change your procedures. So, what’s the latest. Well, the media reports are right – the case has been heard. But there’s no decision yet and for the time being, the DRA remains intact. Judgement has been “reserved” over the court’s summer break and will be given by the newly formed Supreme Court at the start of October.
Any idea? Even though the government has brought forward its own review of the DRA – this will now happen in 2010 rather than 20100 – there’s no indication as to which way the court’s decision will go.
Tip. For now you can still legally retire an employee on their 65th birthday. But if you start the process and they ask to continue working, we suggest you defer your decision until after the outcome is known. If the DRA remains you can refuse/ / if it goes, you won’t have wasted time.
Source: Tips & Advice Personnel September 4 2009
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