Heyday challenge on age discrimination overturned

In a move towards the anticipated review of the default retirement age (DRA) by the Government in 2010, the High Court has dismissed a legal challenge by Heyday - a division of Age Concern - that it is unlawful to force an employee over the age of 65 to retire.

The case, which was brought before the European Court of Justice (ECJ) back in March 2009, focused on an argument that the provisions of the Employment Equality (Age) Regulations 2006 qualify as contrary to the European framework Directive regarding discrimination.

In a nod towards the impending review of the DRA, which was earlier this year brought forward from 2011 to 2010, Mr Justice Blake said: "the case for advancing the [default retirement age] beyond [the] minimum age of 65 at least would seem to be compelling." He ruled that adopting a DRA was not "a disproportionate way of giving effect to the social aim of labour market confidence."

Pauline Sibbit, partner at Sacker & Partners LLP, communed: "It seems clear that the default retirement age could be here to stay. In making his decision, the judge righty drew a distinction between having a default retirement age, and imposing a mandatory one. He also recognised (as the ECJ had before him) that age discrimination is a very different animal than other types of discrimination - the fact is, we all grow older and face decisions about retirement.

"But the story is far from over as all eyes are now on the Government's 2010 review. Set against the backdrop of a radically changed economy and the fact that people are quite simply living longer, the judge made no secret of how view that pitching the default age at 65 no longer stacks up."

Specialist employment and partnership law firm CM Murray LLP also believes that the DRA is here to stay, at least for the time being, which must be a "huge sigh of relief". Edward Wanambwa, partner, added: "But this is only a temporary reprieve."

Jonathan Maude, employment partner at Hogan & Hartson, however, disagreed: "As the article suggests, I understand it likely that the retirement age will be reviewed by the government and likely to be removed. Basically, the government will probably take this action as financially in its interests to do so as it keeps people off the state pension and keeps them financial contributing through tax and NI. So, it's good news for employers currently as they can review members of their workforce as they approach the 65 bar but likely to be short lived."

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