A14 Training Services Ltd

A decision on the statutory retirement age?

Referring to the recent  “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 individual member states to decide if it met their own “social and economic policy objectives”.

The matter was due before the High Court in the autumn. Yet in July it was widely reported that the hearing had been concluded. So, what’s the latest? Well, the case has been heard. But there’s no decision yet and for the time being, the DRA remains intact. Judgment has been “reserved” over the court’s summer break and will be given by the newly formed Supreme Court at the start of October.

Even though the government has brought forward its own review of the DRA - this will now happen in 2010 rather than 2011 - there’s no indication as to which way the court’s decision will go.

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, it is suggested that 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.