Is a retirement age of 65 now lawful? Sejal Raja reports
Since the government abolished the mandatory retirement age last month, many employers have erred on the side of caution and removed the contractual retirement age for their employees. However, the recent Supreme Court decision in Seldon v Clarkson Wright and Jakes [2012] UKSC 16, [2012] All ER (D) 121 (Apr) could provide the certainty employers need before adopting a contractual retirement age of 65.
Seldon provides some clarity in that it identifies and confirms that the legitimate aims put forward by the law firm, Clarkson Wright and Jakes, are justified, namely: giving associates an opportunity of partnership within a reasonable time and thereby an incentive to remain with the firm; facilitating workforce planning by knowing when vacancies are to be expected; and limiting the need to expel under-performing partners, thus contributing to a congenial and supportive attitude within the firm.
Discriminatory test
The test to determine discriminatory conduct, in this case direct age discrimination, is set out in reg 3 of the Employment Equality (Age) Regulations 2006
