Potential Good News for Employers
A major ruling today by the UK Supreme Court has given the strongest indication yet that employers may in fact have some powers to ensure that employees retire at 65.
The case concerned Leslie Seldon, a partner at a law firm who whilst wanting to work past 65, was forced to retire when he reached that age because the Partnership deed stated that the firm needed to ensure succession at the firm was in place so that younger members of staff could progress.
Mr Seldon argued that when the firm forced him to retire it was a case of age discrimination. The Court unanimously rejected his appeal, saying that ensuring fairness amongst employees was a legitimate aim for employers and therefore no discrimination had taken place.
They also said that employers needed to give particular consideration to whether ‘public interest’ was served when telling anyone to retire.
What does this mean for employers?
Whilst this decision related to a specific case, it does mean that employers may have the right to retire employees, providing there is a legitimate business reason (which could include succession). However there are a number of factors you should be considering when looking at retirement, and if you have any questions about a particular situation you face, please contact me on 07899697172 or at mnewman@ukemploymentlawadvice.co.uk, who will be able to help.
Michael Newman
PS if you are anywhere near Leyton Orient football Club on May 15th please pop in and visit me at the North East London Business Exhibition.