Retirement age challenge rejected

23/09/2008

Businesses have applauded a decision by a European court adviser to reject a challenge to UK retirement rules.

The European Court of Justice’s Advocate-general rejected the challenge to the right of employers to make people retire at 65, made by Age Concern offshoot Heydey.

Although the ruling is not binding, it will influence the way the European Court of Justice votes when it announces its decision later this year.

Age Concern said in a survey of 60,000 people, 80% said they believe the rules, which since 2006 have allowed employers to compel workers to retire at 65, are ‘unfair’.

Campaigners said many workers had been left worse off after the introduction of the rules. Age Concern director Ailsa Olgive said it was ‘costing good workers their jobs’.

But business groups said the rules were an essential management tool, adding that employees can request the right to work for longer.

Sam Turvey, spokesperson for business lobby group the British Chambers of Commerce (BCC), said businesses commended the Advocate-general’s ruling.

“Obviously it’s not the final ruling, but the initial reaction is quite positive – we haven’t been a fan of the proposed changes,” he said.

“Essentially, it is a promising move. The current system as it stands is the best one we can get.”